3 months ago
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Sunday’s Union Budget announcement that Kerala has been picked, on with Andhra Pradesh, Odisha and Tamil Nadu, for establishing Dedicated Rare Earth Corridors should bring cheer to the State authorities arsenic this inaugural had featured prominently connected its Union Budget privation database arsenic good arsenic successful the 2026-27 State Budget that was tabled successful the Assembly connected January 29.
In its privation database presented successful January successful New Delhi up of the Union Budget, Kerala had sought ₹1,000 crore “for targeted fiscal enactment for corridor infrastructure, exertion acquisition, and related development.” Through this project, Kerala seeks to go “the imperishable magnet hub of the nation,” arsenic Kerala Finance Minister K.N. Balagopal stated successful the State Budget.
On Sunday, presenting the Union Budget, Ms. Sitharaman had announced that the Centre would enactment the 4 mineral-rich States for mounting up “dedicated uncommon world corridor” to “promote mining, processing, probe and manufacturing.”
Abundance of uncommon world elements
According to the State government, its seashore enactment has an abundance of uncommon world elements specified arsenic thorium and scandium that are required successful areas, including abstraction probe and defence, vigor generation, aviation sector, and accumulation of electrical vehicles. In its Union Budget privation list, Kerala had sought the constitution of a Dedicated Rare Earth Corridor, pointing retired that Kerala has 32.435 cardinal tonnes of mineral-sand reserves on its coast, including astir 1.9 cardinal tonnes of monazite.
Responding to Ms. Sitharaman’s announcement, Mr. Balagopal said that Kerala, done its proposal, aims to person industries based connected the minerals established successful Kerala. The State does not privation to person the minerals simply mined and carted disconnected extracurricular the State.
According to Kerala’s proposal, this corridor should nexus Vizhinjam wherever the caller planetary seaport is situated, with Chavara successful Kollam territory wherever the Kerala Minerals and Metals Ltd. (KMML) is situated, and Kochi “for the home accumulation of imperishable magnets.” Through the constitution of the corridor, Kerala is eyeing an concern of ₹42,000 crore and 50,000 occupation opportunities.
Permanent magnets
In the State Budget which Mr. Balagopal presented connected January 29, ₹100 crore had been earmarked for establishing a Rare Earth Critical Minerals Mission successful concern with KMML, KELTRON and Non-Ferrous Materials Technology Development Centre (NFTDC). Kerala expects that this inaugural would enactment concern requirements, portion substantially reducing India’s dependence connected imported rare-earth magnets. “The monazite is comparatively escaped from clay and different impurities, making it easier to process. Approximately 25% of the uncommon world oxides (REO) are Neodymium and Praseodymium, which are indispensable for producing imperishable magnets utilized successful defence, aerospace, and aeronautical applications,” Kerala had suggested to the Centre successful January astatine a pre-Budget consultation called by Ms. Sitharaman.
That said, the existent implementation of this task is apt to request heavy studies and safeguards fixed Kerala’s ecological vulnerabilities and coastal and mining-related issues. At present, large-scale mining activities successful Kerala are confined to dense mineral sands, China clay and, to a lesser extent, limestone/lime shell, silica soil and granite. In 2024-25, mining and quarrying accounted for an estimated worth of ₹2,57,598 lakh astatine changeless prices successful Kerala’s Gross State Value Added (GSVA), according to Economic Review 2025 prepared by the State Planning Board.
