The Ministry of Heavy Industries (MHI) has extended the deadline for receiving bids under the Rare Earth Permanent Magnet (REPM) incentive scheme following requests from industry stakeholders for additional time, according to an official statement issued on June 25th.

The last date for submission of bids has been extended by one month to July 29th, 2026, from the earlier deadline of June 29th, 2026. The opening of technical bids has also been rescheduled by one month, moving to July 30th, 2026, from June 30th, 2026. The global tender, originally floated on March 20, 2026, is aimed at selecting manufacturers as beneficiaries under the scheme to establish integrated REPM production facilities in India.

The extension marks the second revision of the timeline. The earlier deadline had already been shifted from May 28th, 2026, to June 29th, 2026, indicating repeated adjustments in response to stakeholder feedback. The ministry stated that the latest extension has been made "to facilitate wider participation and provide additional time for stakeholders in the bidding process".

The Rs. 72.8 billion (US$ 770.6 million) Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets is designed to establish a total production capacity of 6,000 metric tonnes per annum (MTPA) of integrated rare earth permanent magnet manufacturing facilities in India.

According to officials, participation interest from global REPM manufacturers appears limited, raising concerns over the pace of response to the initiative. The scheme is intended to strengthen domestic manufacturing capabilities in a sector currently dominated by imports.

Rare earth permanent magnets are high-performance materials made from alloys containing rare earth elements, primarily neodymium (Nd), praseodymium (Pr) and samarium (Sm). They are widely used in electric vehicles, wind turbines, high-end electronics, as well as aerospace and defence applications.

At present, China accounts for around 90 per cent of global rare earth magnet production. It temporarily restricted exports to India in early 2025, leading to supply concerns among Indian vehicle manufacturers. In response, the government introduced the incentive scheme to reduce import dependence and develop domestic manufacturing capacity, with the long-term objective of enabling exports.

India is considered to have one of the world's largest rare earth reserves, primarily located in coastal regions. However, IREL (India), operating under the Department of Atomic Energy, remains the only domestic entity engaged in mining rare earth ores and refining them into rare earth oxides (REOs).

The scheme was approved by the Union Cabinet chaired by Prime Minister Narendra Modi on November 26, 2025. It carries a financial outlay of Rs. 72.8 billion, comprising a Rs. 7.5 billion capital subsidy and Rs. 64.5 billion in sales-linked incentives to be disbursed over five years. Eligible manufacturers can receive incentives of up to 40 per cent of eligible net sales.

By establishing a complete value chain from neodymium-praseodymium (NdPr) oxide to finished magnets within India, the scheme is expected to reduce import dependence and enhance self-reliance, while positioning the country as a potential player in the global REPM market.

Several companies, including Bosch India, Mishra Dhatu Nigam, Global Tech & Material, Tata AutoComp Systems, and the Mahindra Group, are among the prospective participants monitoring the opportunity.