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

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Next Story
Infrastructure Urban

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

Next Story
Infrastructure Urban

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement