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The Centre has pushed the bid submission deadline to 29 June after companies sought more time for the rare earth magnet incentive programme aimed at reducing dependence on China.
Samples of rare earth minerals from left, Cerium oxide, Bastnasite, Neodymium oxide and Lanthanum carbonate on display at Molycorp's Mountain Pass Rare Earth facility in Mountain Pass, California. (File Photo: Reuters)NEW DELHI: The Union heavy industries ministry has extended by a month the bid submission deadline for its ₹7,280 crore incentive scheme to set up five rare earth magnet manufacturing plants in India, following requests from interested companies for more time.
Under the revised timeline, bids can now be submitted until 29 June, according to a ministry statement issued on Friday.
“The Bid Due Date has been extended from 28.05.2026 to 29.06.2026, while the opening of Technical Bids has been rescheduled from 29.05.2026 to 30.06.2026 to facilitate wider participation and provide additional time for stakeholder in bidding process,” the statement said.
The scheme to promote manufacturing of rare earth permanent magnets was approved by the Union cabinet in November 2025 after Beijing halted exports of rare earth magnets earlier 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 9 June to stakeholder queries submitted before 22 April.
The scheme aims to support five factories with a combined production capacity of 6,000 tonnes per annum. It provides capital incentives for plant construction and sales-linked incentives over five years. The programme is designed to run for seven years, including an initial two-year phase for investments and establishment of rare earth processing facilities.
Despite holding some of the world’s largest rare earth reserves, India remains heavily dependent on China for rare earth magnets. China accounts for nearly 60% of global rare earth mining and around 90% of processing capacity.
About 20 companies participated in earlier consultations with the ministry. During these discussions, some companies considering investments under the scheme had raised concerns over raw material availability, Mint reported on 12 January.
Under the scheme guidelines, India Rare Earth Ltd (IREL), the country’s only rare earth miner, will supply rare earth oxides—the key raw material—to only three of the five proposed plants, specifically those selected as the lowest bidders.
The government, however, has assured companies that raw material supply will not be a constraint, stating that IREL will provide 500 tonnes of raw material to selected firms.
Industry estimates suggest one tonne of rare earth oxide can produce roughly three tonnes of magnets, implying that the proposed allocation would support production of about 1,500 tonnes of magnets.
About the Author
Manas Pimpalkhare
Manas is a New Delhi-based journalist with Mint, where he covers the intersection of economic policy, industry, and emerging sectors shaping India’s growth. He writes on government regulation, manufacturing, and the clean energy transition, with particular depth in areas such as electric mobility, battery ecosystems, and rare-earth supply chains. He has written on India’s efforts to build domestic capacity in electric vehicles and energy storage, as well as the broader push to reduce import dependence and strengthen supply chain resilience. His reports are not limited to capturing the headline; they also aim to explain complex policy simply.<br><br>Manas has studied law in Pune, the city where he grew up, followed by a business journalism diploma from the Asian College of Journalism in Chennai. In his almost two years of being a correspondent for Mint, Manas has reported as major wars unfolded, a general election brought surprises for both the ruling party and the Opposition, and three Union Budget announcements where India has charted its economic course for the days to come.<br><br>On vacation, Manas plays bass guitar with his friends in Space & Co, their jam-rock band. He also likes cats, and occasions of late-night snacking.
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