The government received 20 bids, including from Larsen & Toubro and Coal India, for the Rs 7,280-crore scheme to promote manufacturing of sintered rare earth permanent magnets (REPM), the Ministry of Heavy Industries said on Thursday.
Other bidders included 20 Microns, Attero Recycling, BaRupOn – IRP Consortium, Jay Fe Cylinders, Keystone Infra– Huebox Interiors, Lohum Magnets & Energy Solutions, Midwest Energy – Midwest Advanced Materials (JV), NEO Performance Materials (Singapore), Proterial (India), and Renew Private Limited.
The first-of-its-kind scheme aims to set up a total capacity of 6,000 metric tons per annum (MTPA) for integrated Rare Earth Permanent Magnet manufacturing facilities in India.
The Union Cabinet approved the scheme in November with a financial outlay of Rs 7,280 crore. The last date for submitting bids was August 12 and the technical bids opened on Thursday.
“The scheme envisions allocating the total capacity to five beneficiaries through a global competitive bidding process. Each beneficiary will be allotted up to 1,200 MTPA of capacity,” the ministry said in a release.
The total duration of the scheme will be seven years from the date of award, including a two-year gestation period for setting up an integrated REPM manufacturing facility, and 5 years for incentive disbursement on the sale of REPM.
REPM are widely used in electric vehicles, wind turbines, high-end electronics, aerospace and defence systems. The scheme aims to reduce import dependence in this sector.
“By fostering indigenous capabilities in REPM production, the scheme will not only secure the REPM supply chain for domestic industries but also support the nation’s Net Zero 2070 commitment,” the ministry said.