Rare Earth Permanent Magnets scheme notification expected by mid December, bidding window in early 2026

India currently relies heavily on overseas suppliers, particularly China, for REPM components. 
| Photo Credit:
PTI

The bidding process under the Rare Earth Permanent Magnets (REPM) Scheme is expected to begin around February 2026, sources told businessline. 

Notably, REPM scheme is part of the Centre’s efforts to accelerate domestic manufacturing of critical minerals and reduce import dependence in sectors such as electric vehicles, renewable energy systems, electronics, defence and robotics. 

As per sources, “The notification for the scheme is likely to be issued by December 15.” 

“The technical details and bidding process may take another 2-3 months,” said sources, adding that bidding is anticipated to start “around February–March”.

Around 15 companies, they said, had shown interest during the initial consultation. 

“A list of five selected companies will be finalised within six months,” sources said.

Govt push from FY29

Sources stated that the ₹6,450-crore sales-linked incentive components will be distributed equally over five years, starting FY2028–29, amounting to ₹1,290 crore per year. 

Furthermore, sources noted that projects completed ahead of schedule will receive incentive payments earlier.

Accordingly, the scheme aims to support end-to-end value-chain development — from raw material processing to magnet production — and encourage large-scale private investment.

India currently relies heavily on overseas suppliers, particularly China, for REPM components. 

IREL revival

Apart from private-sector participation, the government is also working on reviving State-owned IREL (India) Ltd, which manages rare-earth reserves. 

The company’s existing output is around 500 metric tonnes annually, and efforts are underway to expand this to 1,600-2,000 mt over the next two to three years through modernisation and additional processing capacity.

Additionally, sources cited that the government intends to streamline regulatory approvals and create a predictable framework for technology partnerships, research collaborations and long-term supply arrangements. 

Initial industry interactions have also highlighted interest from global magnet manufacturers exploring opportunities to shift parts of their production to India, sources said.

Additionally, several States have expressed willingness to offer land, infrastructure and clearances to prospective bidders once the REPM scheme is formally launched. 

Meanwhile, discussions on logistics support, environmental permissions and local-sourcing norms are ongoing.

Published on November 28, 2025