Finance Minister Nirmala Sitharaman's Budget 2026 announcement of establishing dedicated rare earth corridors in Odisha, alongside Kerala, Andhra Pradesh, and Tamil Nadu, has provided a significant impetus to the state's strategic mineral reserves, primarily located in its coastal beach sands. This initiative is poised to accelerate mining, processing, research, and manufacturing activities, reinforcing Odisha's pivotal role in India's efforts to secure its rare earth supply chain and achieve self-reliance in critical minerals.
Strategic Move to Enhance Domestic Production
In her budget speech, Sitharaman highlighted the launch of a scheme for rare earth permanent magnets in November 2025 and proposed support for mineral-rich states to establish these corridors. The corridors aim to promote mining, processing, research, and manufacturing, which is expected to boost domestic production of permanent magnets essential for electric vehicles (EVs), clean energy systems, and defense applications. This move is anticipated to reduce import dependency and mitigate supply risks, aligning with India's broader goal of self-sufficiency in critical minerals.
IREL's Role and Current Activities
According to information shared by Jitendra Singh, Union Minister of State for Science and Technology and Earth Sciences, in the Rajya Sabha, IREL (India) Limited—a public sector undertaking under the Department of Atomic Energy—has been actively involved. IREL, responsible for producing rare earth elements and titanium- and zircon-bearing minerals for the nuclear sector, has received letters of intent for three mineral deposits: two in Odisha and one in Tamil Nadu. Additionally, it has been nominated as the prospective lessee for one deposit in Andhra Pradesh, with pre-project activities underway to enhance processing capacity.
One of IREL's flagship facilities, the Orissa Sands Complex (OSCOM) in Chhatrapur, Ganjam district, operates over a 2,464-hectare mining lease area. The complex has ramped up mining operations to 7.5 million tonnes of mineral sands annually, producing approximately 6 lakh tonnes of processed minerals such as:
- Ilmenite
- Rutile
- Zircon
- Sillimanite
- Garnet
The OSCOM deposits feature an average heavy mineral grade of 10-12% across the mineable coastal stretch, underscoring Odisha's importance in India's rare earth and critical minerals landscape.
India's Vast Mineral Resources
The Atomic Minerals Directorate for Exploration and Research (AMD), a constituent unit of the Department of Atomic Energy, has identified substantial mineral reserves in India. Key findings include:
- Approximately 7.23 million tonnes of in-situ rare earth oxide
- About 1.18 million tonnes of thorium oxide contained in roughly 13.15 million tonnes of monazite
Beach sand minerals (BMS) ore contains monazite, a phosphate mineral of rare earth elements that includes uranium and thorium. Furthermore, India possesses extensive resources of titanium-bearing minerals—ilmenite, rutile, and leucoxene—estimated at 761.97 million tonnes, along with 38 million tonnes of zircon. These deposits are found across coastal beach sands, teri or red sands, and inland alluvium in states such as Odisha, Andhra Pradesh, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra.
The establishment of rare earth corridors is a strategic step towards harnessing these resources, fostering economic growth, and strengthening India's position in the global critical minerals market. This initiative not only supports local industries but also contributes to national security and sustainable development goals.
