+
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.

Next Story
Infrastructure Transport

Second Mountain Tunnel Breakthrough in Palghar Advances High Speed Rail

The Mumbai-Ahmedabad high speed rail (MAHSR) project reached a milestone with the breakthrough of a mountain tunnel in Palghar, Maharashtra. Mountain tunnel MT-six measures 454 metres long and 14.4 metres wide and will accommodate up and down tracks. The breakthrough follows MT-five near Saphale on second January 2026 and the MT-six excavation was completed from both ends using the New Austrian Tunnelling Method. The ministry reported that the tunnelling was completed within 12 months. The New Austrian Tunnelling Method is favoured for its flexibility in complex geology and irregular tunnel s..

Next Story
Infrastructure Transport

Modi Government Pushes Atmanirbhar Container Drive With BCSL MoU

The Union Government advanced a plan to create an integrated, domestically anchored container ecosystem with the signing of a Memorandum of Understanding to establish the Bharat Container Shipping Line (BCSL). The MoU was signed by key agencies including the Shipping Corporation of India and Container Corporation of India alongside major port authorities and Sagarmala Finance Corporation Limited under the Ministry of Ports, Shipping and Waterways, in the presence of senior ministers. The initiative aligns with the Container Manufacturing Assistance Scheme announced in the Union Budget 2026–2..

Next Story
Infrastructure Urban

Ministry Reports Gains In Mobility For Marginalised Communities

The Ministry of Social Justice and Empowerment is implementing skill development, education and rehabilitation schemes to promote socio-economic mobility and sustainable livelihoods for marginalised and disadvantaged communities across the country. Programmes target Scheduled Castes, Other Backward Classes, Economically Weaker Sections, De-notified Tribes and Safai Karamcharis through specialised implementing corporations and empanelled training institutes. Pradhan Mantri Dakshata Aur Kushalta Sampann Hitgrahi Yojana, or PM-DAKSH, provided skill training and placement support through the Nati..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App