L&T, Coal India Among 20 Bidders for ₹7,280 Crore Rare Earth Magnet Scheme

The government's plan to build domestic capacity for rare earth permanent magnets has drawn bids from 20 companies and consortia, including L&T, Coal India, Renew, Attero Recycling and Lohum Magnets & Energy Solutions, as per The Economic Times news report.  

The Ministry of Heavy Industries opened the technical bids on Thursday, a day after August 12, 2026, submission deadline. 

Global Players Among Bidders 

The bidding response also includes NEO Performance Materials (Singapore) PTE. LTD. and Proterial (India) Limited, the Indian arm of Japan-based Proterial. 

Other bidders include 20 Microns, BaRupOn-IRP Consortium, Jay Fe Cylinders, Keystone Infra-Huebox Interiors JV, Midwest Energy-Midwest Advanced Materials JV, N.A.N. Magnetech, Nexon Geochem, PrNd Metal and Magnets, Prozeal Green Energy, Ramp Metals & Minerals, Shankaranarayana Constructions, Solpro Greentech and Starteck Finance. 

6,000 MTPA Capacity Target 

The scheme aims to create 6,000 metric tonnes per annum (MTPA) of integrated manufacturing capacity for sintered NdFeB rare earth permanent magnets. 

Five beneficiaries will be selected through global competitive bidding, with each eligible for up to 1,200 MTPA. 

7-Year Scheme 

The Union Cabinet approved the scheme on November 26, 2025, with an outlay of ₹7,280 crore. The Ministry notified it on December 15, 2025, while the request for proposal was issued through the Central Public Procurement portal on March 20, 2026. 

The scheme will run for seven years from the award date, including two years for setting up integrated facilities and five years of incentives linked to magnet sales. 

Focus on Import Dependence 

Rare earth permanent magnets are used in electric vehicles, wind turbines, high-end electronics, aerospace and defence systems. 

The scheme is designed to establish an Indian value chain from NdPr oxide to finished magnets. China currently dominates global supply, while its export restrictions in 2025 disrupted supplies and exposed the dependence of industries on Chinese magnets. 

Read More: Lenskart Solutions Share Price Gains After Q1 FY27 Earnings Results: Total Income Up 43% YoY! 

Conclusion 

The 20 bids mark the next stage of the ₹7,280 crore scheme, which targets 6,000 MTPA of domestic NdFeB magnet capacity through five beneficiaries. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.