Last updated : February 03, 2026 10:23 am
India's beach sands along the coasts of Kerala, Odisha, Andhra Pradesh, and Tamil Nadu are abundant in atomic minerals, notably monazite, which serves as the primary raw material for thorium extraction
The Union Budget 2026-27 has introduced a significant proposal for the establishment of a Rare Earth Corridor, aimed at harnessing India's coastal mineral resources to bolster strategic sectors. This initiative holds particular relevance for Kerala, given its rich deposits of beach sand minerals, and aligns with national priorities in renewable energy, advanced manufacturing, and nuclear development. The corridor is envisioned as a comprehensive beach sand mineral development program, fostering value addition and sustainable extraction to meet evolving technological demands.
Strategic Context and Relevance
The Rare Earth Corridor proposal is particularly timely in the context of India's push towards renewable energy development, electric vehicles (EVs), electrolysers, and sensors. These sectors rely heavily on rare earth elements and associated minerals for components such as magnets, batteries, and catalytic systems. By enhancing domestic supply chains, the corridor addresses vulnerabilities exposed by global disruptions, including China's recent ban on exporting certain rare earth minerals. This restriction has created challenges for Indian EV manufacturers and related industries, underscoring the need for self-reliance to ensure uninterrupted availability for future generations.
Current Utilization and Challenges
India's beach sands along the coasts of Kerala, Odisha, Andhra Pradesh, and Tamil Nadu are abundant in atomic minerals, notably monazite, which serves as the primary raw material for thorium extraction. Thorium is integral to India's third-stage nuclear development program, providing a sustainable fuel source. At present, mining of monazite is exclusively handled by Indian Rare Earths Limited (IREL), with processing conducted by the Bhabha Atomic Research Centre (BARC). Similarly, ilmenite extraction is limited to public sector undertakings, including IREL and Kerala Minerals and Metals Limited (KMML).
However, utilization of these resources, particularly in the Chavara-Kayamkulam belt in Kerala, remains primitive. Current practices focus primarily on basic extraction, with limited downstream processing. This underutilization fails to capture the full economic potential amid global trends in digitization and decarbonization, where advanced applications of rare earths and associated minerals are essential.
Opportunities for Expansion and Value Addition
Greater value addition is imperative to align with contemporary demands. The titanium and zirconium industries in India require expansion to meet rising needs driven by growth in infrastructure, aviation, aerospace, manufacturing, energy production, maintenance, and repairs. There is substantial scope for developing titanium metal, alloys, chemicals, and nanomaterials, which are critical for applications such as those demanded by the Indian Space Research Organisation (ISRO), aircraft manufacturing and repairs, medical implants, and paint ingredients.
To realize this potential, collaboration between the Central and State Governments is essential. Joint efforts could facilitate integrated development, including technology upgrades, research partnerships, and policy frameworks to promote private sector involvement while ensuring environmental safeguards. This approach would not only enhance India's strategic mineral security but also contribute to economic growth in mineral-rich states like Kerala.
The proposed Rare Earth Corridor represents a forward-looking initiative that positions India as a key player in the global rare earth ecosystem. By addressing current limitations and prioritizing value addition, it can drive innovation in clean energy and high-tech industries, ultimately supporting national goals of sustainability and self-sufficiency. Implementation will require coordinated action to translate this budget proposal into tangible outcomes.
(Mr. Nair is a Former Secretary to Chief Minister and Chairperson, Public Sector Restructuring & Audit Board, Government of Kerala.)