By Admin 
Preparations have now begun in India to become the world’s most powerful magnet. The Ministry of Heavy Industries has issued a global tender to manufacture Sintered Rare Earth Permanent Magnet. This means that now these special magnets will be made in India only and the dependence on imports from abroad will be reduced. These magnets are used in everything from electric vehicles to defense sector. Till now India has been importing these magnets from outside on a large scale, but now the government is taking big steps towards making them Made in India.
The government has fixed a total budget of Rs 7 thousand 280 crore for this scheme. In this, capital assistance of up to Rs 750 crore will be given to the companies and sales related incentive of Rs 6 thousand 450 crore will also be given. Also IREL Ltd. Through this, the supply of NdPr Oxide will be ensured, which is the essential raw material for making these magnets. The target of this scheme is to produce 6,000 metric tons every year. Each company will be given a capacity of 600 to 1,200 metric tons. This project will be given to three companies working at low cost.
What is rare earth magnet made of?
Rare earth magnets are actually made of neodymium, iron and boron, hence they are called NdFeB magnets. These are many times more powerful than ordinary magnets and produce very strong magnetic forces even in small sizes. Once ready, they work continuously without electricity. For this reason, they are used in electric vehicles, wind turbines, aerospace, defense and high-end electronics. From mobile speakers to fighter jet radar, they are used everywhere.
China is the largest producer of magnets
China is the largest producer of rare earth magnets in the world and about 90 percent of the supply comes from there. India now wants to reduce this dependence and develop the entire supply chain within the country. As per the dates related to the tender, the documents are available from 20 March 2026. Pre-bid meeting will be held on 7th April. The last date for submission of applications is 28 May 2026 and the technical bid will be opened on 29 May. The entire process will be online and will be completed in two phases.
When did the Union Cabinet give approval?
The scheme related to Magnet was approved by the Union Cabinet chaired by Narendra Modi on 26 November 2025. The government’s aim is that the entire process from raw material to finished magnets should be done in India so that the country can become self-reliant. Overall, this step is being considered very important for strengthening India in the field of technology and industry as well as for future energy and defense needs.