Alloy is crushed to powder, pressed in a magnetic field, sintered in vacuum furnaces, machined, coated and magnetised. This is what the ₹7,280 Cr scheme pays for.
Building a private sintered NdFeB magnet plant in Hyderabad (500 tonnes a year first phase) - the closest to India's first commercial sintered-magnet output - with in-house oxide-to-metal and alloy steps; bid for the scheme as a Midwest Energy-MAM joint venture
Strengths
Furthest along: technology from the government's NFTDC and Technology Development Board funding (PIB, May 2024); reported in Sep 2026 to be close to commercial output
Targets 5,000 tonnes a year (by 2030 per PIB, 2024; later reports say end-2027)
Risks
Unlisted; listed Midwest Ltd is a sister concern, not its parent, so there is no clean listed route in
Commercial output dates have slipped (first magnets were targeted for Dec 2025)
Background
Hyderabad-based; part of the Midwest group (Kollareddy family)
Joint bid with Midwest Energy Ltd under the REPM scheme (PIB bidder list, 13 Aug 2026)
Compiled from public reporting — not exchange-listed.
Where it fits
Integrated makers take NdPr oxide, reduce it to metal, make alloy and turn it into finished sintered NdFeB magnets. The scheme only rewards magnets made from oxide in India - an importer that just grinds and presses foreign alloy does not qualify.
Why it matters
The scheme (Cabinet approval 26 Nov 2025, notified 15 Dec 2025) splits 6,000 tonnes a year among up to five winners, each 600-1,200 tonnes, picked by the lowest quoted incentive per kg. Winners get a sales-linked incentive of at most ₹2,150 per kg (and at most 40% of sales) for five years after a two-year build, plus a capital subsidy of 15% of investment (capped at ₹75-150 Cr). The three lowest bidders also get 500 tonnes a year of NdPr oxide from IREL between them. 20 bids were opened on 13 Aug 2026; no winner had been named by 20 Oct 2026.
Where the value pool sits
Total incentive: ₹6,450 Cr over five years, up to ₹1,290 Cr for a 1,200-tonne winner (₹645 Cr at 600 tonnes). That is meaningful for a small-cap like 20 Microns, but a rounding error for L&T or Coal India. Economics after the incentive depend on whether Indian magnets can match Chinese prices.
Key drivers
Sales-linked incentive of up to ₹2,150/kg for five years
Buyers paying a premium for non-China supply after the 2025 shortages
Budget 2026-27 Rare Earth Corridors and NCMM support upstream
Potential bottlenecks
Oxide supply: IREL's 500 tonnes a year of NdPr oxide (200/167/133 t to the three lowest bidders) supports only about 1,500 tonnes of magnets; the other two winners must find their own
Know-how: few bidders have made sintered magnets before; most need foreign technology partners
Equipment (jet mills, sintering furnaces, strip casters) is largely imported