Larsen & Toubro Ltd. plans to manufacture rare-earth magnets in India, said people familiar with the matter, as the engineering giant rides a government push to reduce a reliance on imports and loosen China’s stranglehold over the critical industrial component.The conglomerate is preparing a bid for the government’s ?7,280-crore ($764 million) incentive policy for such magnets, the people said, asking not to be identified because the deliberations are private. L&T will need to secure a technology partner with the necessary expertise for its foray in a sector known for high-precision engineering, they added.The program has received 15 bids so far,…