NEW DELHI: The Union Ministry of Heavy Industries has extended the deadline for submission of bids by a month ₹A $7,280 million incentive program to set up five rare earth magnet manufacturing plants in India following requests from interested companies for more time.
Under the revised schedule, bids can now be submitted until June 29, according to a statement from the ministry on Friday.
“The tender due date has been extended from 28/05/2026 to 29/06/2026 while the opening of technical tenders has been postponed from 29/05/2026 to 30/06/2026 to facilitate wider participation and give stakeholders more time in the bidding process,” the statement said.
A program to promote the production of rare earth permanent magnets was approved by the Union Cabinet in November 2025 after Beijing halted exports of rare earth magnets that year, triggering a severe supply shortage. China suspended exports again in April 2025 during its tariff dispute with the US.
The ministry also said it would respond on June 9 to stakeholder inquiries submitted by April 22.
The aim of the program is to support five factories with a combined production capacity of 6,000 tons per year. Provides capital incentives for plant construction and sales-related incentives for five years. The program is designed to run for seven years, including an initial two-year phase for investment and establishment of rare earth processing facilities.
Despite having some of the world’s largest reserves of rare earths, India remains heavily dependent on China for rare earth magnets. China accounts for nearly 60% of global rare earth mining and approximately 90% of processing capacity.
About 20 companies participated in earlier consultations with the Ministry. During these discussions, some companies considering investment under the program have expressed concerns about the availability of raw materials, Mint reported on January 12.
According to the guidelines for the scheme, India Rare Earth Ltd (IREL), the country’s sole rare earth miner, will supply rare earth oxides – a key raw material – to only three of the five proposed plants, namely those selected as the lowest bidders.
However, the government has assured the company that the supply of raw materials will not be a hindrance and said that IREL will provide 500 tonnes of raw material to the selected firms.
Industry estimates indicate that one tonne of rare earth oxide can produce roughly three tonnes of magnets, meaning the proposed allocation would support the production of around 1,500 tonnes of magnets.
