+
Panel Urges Budget Push For IREL To Secure Rare Earths
ECONOMY & POLICY

Panel Urges Budget Push For IREL To Secure Rare Earths

Amid rising global demand for rare earth elements, a parliamentary panel has urged the government to strengthen IREL (India) with targeted budgetary support to prioritise the exploration and mining of these critical minerals. IREL, a central public sector enterprise under the Department of Atomic Energy, is currently the only company in India engaged in mining rare earth ores and refining them into rare earth oxides.

The Standing Committee on Coal, Mines and Steel, in its latest report, called on the government to formulate strategies to improve domestic availability through identification, exploration and assessment of economic viability, with the objective of reducing India’s heavy dependence on imports. Rare earth minerals, which are difficult and costly to extract due to their low concentration in nature, are vital for clean energy technologies such as wind turbines, electric motors, hybrid vehicle batteries and solar power systems, as well as for defence applications.

Under the Mines and Minerals framework, rare earth minerals that do not contain uranium and thorium are classified as critical and strategic minerals, while those containing uranium and thorium are designated as atomic minerals and regulated by the Department of Atomic Energy. The committee said the government should consider reinforcing institutions such as IREL through focused budgetary allocations to accelerate exploration and mining of rare earth elements.

The panel also suggested that the Ministry of Mines explore international collaborations to facilitate the transfer of technological know-how and mineral processing capabilities in the rare earth sector. It noted that the Geological Survey of India has stepped up exploration efforts, having undertaken 186 rare earth exploration projects over the past three years, with 94 projects currently underway across the country in the ongoing financial year.

IREL has a mineral processing capacity of about 0.6 million tonnes per annum and produces key minerals including ilmenite, rutile, zircon, sillimanite and garnet. The company operates a rare earth extraction plant at Chatrapur in Odisha and a refining unit at Aluva in Kerala. It is also focused on expanding production capacity, supporting downstream value chain industries and advancing research and development through its facility in Kollam, Kerala.

Amid rising global demand for rare earth elements, a parliamentary panel has urged the government to strengthen IREL (India) with targeted budgetary support to prioritise the exploration and mining of these critical minerals. IREL, a central public sector enterprise under the Department of Atomic Energy, is currently the only company in India engaged in mining rare earth ores and refining them into rare earth oxides. The Standing Committee on Coal, Mines and Steel, in its latest report, called on the government to formulate strategies to improve domestic availability through identification, exploration and assessment of economic viability, with the objective of reducing India’s heavy dependence on imports. Rare earth minerals, which are difficult and costly to extract due to their low concentration in nature, are vital for clean energy technologies such as wind turbines, electric motors, hybrid vehicle batteries and solar power systems, as well as for defence applications. Under the Mines and Minerals framework, rare earth minerals that do not contain uranium and thorium are classified as critical and strategic minerals, while those containing uranium and thorium are designated as atomic minerals and regulated by the Department of Atomic Energy. The committee said the government should consider reinforcing institutions such as IREL through focused budgetary allocations to accelerate exploration and mining of rare earth elements. The panel also suggested that the Ministry of Mines explore international collaborations to facilitate the transfer of technological know-how and mineral processing capabilities in the rare earth sector. It noted that the Geological Survey of India has stepped up exploration efforts, having undertaken 186 rare earth exploration projects over the past three years, with 94 projects currently underway across the country in the ongoing financial year. IREL has a mineral processing capacity of about 0.6 million tonnes per annum and produces key minerals including ilmenite, rutile, zircon, sillimanite and garnet. The company operates a rare earth extraction plant at Chatrapur in Odisha and a refining unit at Aluva in Kerala. It is also focused on expanding production capacity, supporting downstream value chain industries and advancing research and development through its facility in Kollam, Kerala.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train’s Surat-Vapi Section Set for 2027

The first section of the Mumbai-Ahmedabad Bullet Train corridor, linking Surat and Vapi, is targeted to begin services in 2027. Construction is expected to be completed by December 2026, while Railway Minister Ashwini Vaishnaw has indicated that an inauguration could take place around the middle of 2027. The National High Speed Rail Corporation (NHSRCL) said the train being manufactured in India is expected to reach the tracks around April or May 2027. The train will undergo extensive testing before the section is opened for passenger services. The project began construction in 2021 and includ..

Next Story
Infrastructure Transport

Indian Railways Approves Four Projects Worth Rs. 7.36 bn Across Four States

Indian Railways has approved four projects with a combined value of Rs. 7.36 bn across Uttar Pradesh, Maharashtra, Andhra Pradesh and Gujarat. The programme covers train protection, signalling, electric traction supply and a road overbridge, with each project assigned to a different railway zone. In Uttar Pradesh, Rs. 2.52 bn has been approved to extend the Kavach 4.0 automatic train protection system across 607.7 km in the Lucknow Division of North Eastern Railway. The system monitors train movements and can apply the brakes if a driver fails to observe a signal or exceeds a safe speed. The w..

Next Story
Infrastructure Urban

Chandru Raheja Sells 1.49% Stake in Mindspace REIT for Rs. 5 bn

Billionaire Chandru Lachmandas Raheja has sold a 1.49 per cent holding in Mindspace Business Parks REIT for Rs. 5 bn through a bulk deal on the BSE. The transaction involved 9.9 mn units and was executed at an average price of Rs. 505 per unit, according to exchange data. Following the sale, units of Mindspace Business Parks REIT were trading 0.18 per cent lower at Rs. 504.05 on Tuesday. Exchange data did not identify the buyers involved in the transaction. Raheja is the chairman of real estate company K Raheja Corp. The sale involved 99,00,990 units, representing 1.49 per cent of the Mumbai-b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code