Government Opens Bid For Rs 7,300-Crore Scheme For Rare Earth Magnets

The government on Friday invited bids for&amp;nbsp;selection of beneficiaries to set up integrated rare earth permanent magnet manufacturing plants under a Rs 7,280-crore scheme approved last year.The Centre notified the subsidy programme in December to reduce dependence on China for critical inputs and secure supply chains for EVs, electronics, aerospace and green energy.&amp;nbsp;Neodymium-Iron-Boron (NdFeB) is the alloy used to create the strongest type of permanent magnets.The scheme aims to build a complete domestic value chain of converting rare earth oxide into sintered NdFeB, essential for India&#039;s strategic and industrial advancement. It targets a capacity of 6,000 Metric Tonnes Per Annum (MTPA).The bidding will be conducted online through a transparent Least Cost System (LCS) comprising two-stages (Technical Bid and Financial Bid) through Central Public Procurement (CPP) Portal.&amp;nbsp;The tender documents are available from March, 20, a pre-bid conference shall be held on April 7, the bid due date is May 28 and the technical bids will be opened on May 29, the&amp;nbsp;Ministry of Heavy Industries said in a statement.ALSO READ:&amp;nbsp;Manufacturing Ecosystem For Rare Earth Magnets Will Cut Down Imports, Says PM ModiUnder the scheme, the minimum allocation to a beneficiary will be 600 MTPA, going up to a maximum allocation of 1,200 MTPA, in multiples of 100 MTPA. The scheme provides a capital subsidy of Rs 750 crore and, sales-linked incentive of Rs 6,450 crore, with limited assured supply of NdPr oxide from IREL (India) Ltd. for the three lowest bidders.The total duration of the scheme will be seven years, which includes two years of gestation period for setting up the manufacturing facilities and five years for incentive disbursement on the sale of sintered NdFeB REPM.Further, in case the first sale of sintered NdFeB REPM commences prior to the completion of the gestation period, then this additional period will also be eligible for sales-linked incentive over and above the 5-year duration.Reducing Import DependenceIndia has one of the world&#039;s largest rare earth reserves, mostly located in coastal regions.&amp;nbsp;While India possesses upstream capabilities in mining, separation and oxide refining, there is a notable gap in the industrial-scale midstream capabilities needed for oxide-to-metal, metal-to-alloy and alloy-to-magnet conversion.REPMs are among the most powerful magnets in the world and are widely used in electric vehicles, wind turbines, high-end electronics, aerospace and defence systems. By building complete value chain from NdPr oxide to finished magnets in India, the scheme is expected to significantly reduce import dependence in this sector, the Ministry said.ALSO READ:&amp;nbsp;Japan-India Eyeing Collaboration To Explore Rare Earth Deposits In Rajasthan

Government Opens Bid For Rs 7,300-Crore Scheme For Rare Earth Magnets

The scheme aims to build a domestic value chain of converting rare earth oxide into sintered NdFeB to create the strongest type of permanent magnets.

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