MHI extends rare earth magnet manufacturing tender deadline for third time

Heavy Industries Ministry extends bid deadline to August 12 under the Rs 7,280-crore scheme to encourage domestic rare earth permanent magnet manufacturing

The Ministry of Heavy Industries (MHI) has extended the bid submission deadline for its tender to select manufacturers under the scheme to promote manufacturing of sintered rare-earth permanent magnet (REPM) for the third time, giving prospective bidders two more weeks to submit proposals.

 

According to a ministry statement issued on Wednesday, the deadline for bid submission has been extended from July 29 to August 12, while technical bids will now be opened on August 13 instead of July 30. “The bid due date has been extended... to facilitate wider participation and provide additional time for stakeholders in the bidding process,” the ministry said.

   

MHI had floated the global tender on March 20, with the original bid submission deadline set for May 28. It was subsequently extended to June 29, then to July 29, and has now been pushed to August 12.

 

The first two extensions were granted following requests from stakeholders seeking more time to prepare their bids, according to the ministry.

 

The tender is part of the government’s ₹7,280 crore scheme to promote manufacturing of sintered REPM, approved by the Union Cabinet in November 2025.

 

The scheme aims to create 6,000 tonnes per annum of integrated rare-earth permanent magnet manufacturing capacity in India. Unlike companies that assemble magnets from imported materials, it seeks to establish an integrated domestic value chain — from neodymium-praseodymium oxide, a key rare-earth raw material, to finished permanent magnets.

 

The ministry said developing the entire production chain domestically would significantly reduce import dependence.

 

REPMs are used in electric vehicles, wind turbines, consumer electronics, aerospace and defence equipment. They are particularly critical for electric vehicle motors because of their high magnetic strength and lightweight properties.

 

The government launched the scheme amid growing concerns over India’s dependence on imported rare earth magnets, particularly from China, as demand rises from the electric vehicle and clean energy sectors.