The Ministry of Heavy Industries has recently announced an extension to the bid submission timeline for its global tender under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM). After receiving requests from multiple stakeholders, the government moved the submission deadline from June 29 to July 29, giving bidders an additional month to prepare and submit proposals. The technical bid opening has been similarly postponed from June 30 to July 30.
The extension is intended to broaden participation by both domestic and international manufacturers in a programme designed to bolster India’s manufacturing capacity for strategically important rare‑earth magnets. These magnets are critical inputs for electric vehicles, wind turbines, defence systems and other high‑growth, high‑technology sectors. Officials framed the tender as a landmark step toward reducing import dependence and strengthening the domestic supply chain for critical materials. Industry participants welcomed the extra time, saying it allows firms to finalise consortiums, secure technical documentation and line up financing or technology partnerships. The revised schedule also gives the Ministry more bandwidth to address bidder queries and ensure a transparent evaluation process, which the government says will help attract credible global players while protecting national strategic interests.
REPM push and defence supply
The ‘Rs 7,280 crore REPM scheme’ can help secure a domestic supply base for magnets used in defence and aerospace, because the Cabinet-approved plan is designed to create 6,000 MTPA of integrated rare earth permanent magnet capacity in India and explicitly strengthen supply chains for defence and aerospace. It also aims to reduce India’s current dependence on imports for these critical inputs. REPM scheme will not deliver immediate self-reliance. The approved model includes a two-year gestation period plus five years of sales-linked incentives, so the real impact on defence and aerospace supply chains will depend on how quickly plants are built, technology is absorbed and product quality matches global standards.
What the REPM scheme entails?
The REPM scheme is a Rs 7,280 crore initiative approved by the Union Cabinet on November 26, 2025, to promote the manufacturing of sintered rare earth permanent magnets in India. It is designed to create 6,000 metric tonnes per annum of integrated manufacturing capacity through five beneficiaries selected via a global competitive bidding process, with each beneficiary eligible for up to 1,200 MTPA. The total scheme duration is seven years, including a two-year gestation period for setting up integrated facilities and five years for incentive disbursement on sales.
Why are its incentives and structure?
Rare earth permanent magnets are among the strongest magnets in the world and are essential for electric vehicles, wind turbines, consumer electronics, robotics, aerospace and defence systems. India currently depends heavily on imports, especially from China, leaving the country vulnerable to supply disruptions and geopolitical risk. The scheme is intended to reduce that dependence by building an end-to-end domestic ecosystem spanning rare earth oxides to metals, metals to alloys and alloys to finished magnets.
According to the scheme design, the total financial outlay of Rs 7,280 crore includes Rs 6,450 crore in sales-linked incentives over five years and a capital subsidy of Rs 750 crore for setting up the manufacturing facilities. This incentive structure is meant to encourage investment in processing, refining and magnet-making capabilities, areas where India’s domestic ecosystem remains underdeveloped. The scheme also seeks to attract integrated producers capable of handling the full value chain rather than only limited-stage operations.
Strategic and industrial significance of REPM scheme
Information and Broadcasting Minister Ashwini Vaishnaw has earlier described the Cabinet’s approval as a “very important, strategic decision.” The government says the scheme will strengthen the domestic REPM manufacturing ecosystem, improve supply chain resilience and support India’s clean energy and advanced manufacturing goals. It is also expected to help the country move closer to its Net Zero 2070 commitment and the broader vision of Viksit Bharat @2047 by building a technologically self-reliant and globally competitive industrial base.
By creating integrated magnet manufacturing capacity within India, the scheme is expected to position the country as a stronger player in the global REPM market while reducing import dependence in a sector vital to defence, mobility and renewable energy. The extension of the tender deadline should help widen participation and improve the chances of attracting serious investment from manufacturers with the technical and financial capability to establish large-scale production in India.