News: The Union Budget 2026–27 announced Dedicated Rare Earth Corridors to complement the REPM scheme and strengthen domestic rare earth capabilities.
About Rare Earth Corridors
- Rare Earth Corridors are integrated, state-anchored industrial value chains linking mining, processing, research, and manufacturing of rare earths.
- Target States: The Dedicated Rare Earth Corridors will be established in the mineral-rich states of –
- Odisha
- Kerala
- Andhra Pradesh
- Tamil Nadu
- Focus on: The corridors focus on mining, processing, research, and manufacturing, using the mineral-rich base of coastal states with beach sand minerals.
- Aim: The initiative aims to build a domestic rare earth value chain, support clean energy transition, and operationalise the National Critical Minerals Mission at the state level.
- Principal Source: Monazite-bearing beach sands are the principal source of rare earths in India and are present in the identified coastal states.
- Key features
- Integrated corridor approach: Mining, separation, processing, research, and manufacturing facilities are co-located to reduce logistics and technology gaps.
- State-led execution: The initiative promotes state-level value addition and industrial clustering beyond national-level policy focus.
- Linkage with incentives: The corridors align with the Sintered Rare Earth Permanent Magnet (REPM) scheme and sales-linked incentives for integrated manufacturing units.
- These corridors directly complement the existing presence of IREL (India) Limited in Odisha and Kerala.
- Significance
- The Rare Earth Corridors promote self-reliance by reducing import dependence on China, enhance strategic resource security, and strengthen national security and defence preparedness.
- They support the clean energy transition and Net Zero 2070 goals, while reinforcing policy and institutional reforms under the Mines and Minerals (Development and Regulation) Act (MMDR Act, amended in 2023) and the National Critical Minerals Mission.
About IREL (India) Limited
- IREL (India) Limited, formerly Indian Rare Earths Limited, has operated under the Department of Atomic Energy since 1963.
- With a processing capacity of 10 lakh tonnes, it produces strategic ilmenite, rutile, zircon, sillimanite, and garnet.
- It runs extraction in Odisha and a refining unit at Aluva, Kerala.
