Centre Reviews Rare Earth Corridor Sites in Odisha, Kerala and Andhra Pradesh

The Union government has held discussions on possible locations for rare earth corridor projects across coastal states, as per the news reports.  

The virtual meeting, convened earlier this month by the Department of Atomic Energy (DAE), examined sites including Gopalpur in Odisha, the Kochi-Thiruvananthapuram belt in Kerala and the Vizag-Srikakulam belt in Andhra Pradesh.  

The discussions focused on identifying locations and addressing regulatory issues linked to the proposed corridor initiative. 

Officials from several central ministries, state governments and industry bodies along with Senior state officials, including those at the additional chief secretary level, were also present.  

Budget Announcement Behind the Plan 

The proposal follows the Union Budget 2026-27 announcement on creating dedicated rare earth corridors in mineral-rich states. The initiative is to cover activities across the value chain, including mining, processing, research, and manufacturing. 

The corridor proposal is also linked to the ₹7,280 crore government scheme approved in November to support domestic production of sintered rare earth permanent magnets (REPMs). These magnets are used in electric vehicles, wind turbines, electronics, and defence equipment. 

India has been exploring ways to increase domestic processing capacity for rare earth materials, which are currently sourced largely through imports. 

Regulation of Monazite a Key Issue 

A major topic discussed during the meeting was the handling of monazite, a beach sand mineral that contains rare earth elements as well as thorium. 

Under the Atomic Energy Act, 1962, monazite is classified as a prescribed substance because of the presence of thorium. Mining, transport, storage, and processing of the mineral are therefore tightly regulated. 

Currently, Indian Rare Earths Limited, a public sector undertaking under the DAE, is the only organisation authorised to handle monazite.  

Participants discussed the need for a national standard operating procedure for its safe handling and transport if rare earth processing activities are expanded. 

Land Rights and Coastal Mining Framework 

Beach sand mineral extraction in India is governed by the Atomic Mineral Concession Rules, 2016, which operate under the DAE rather than the standard mining law framework. 

The extraction process involves dredging coastal sand, transporting it to a separation plant, and returning the non-mineral sand to the original site after heavy minerals are removed. Because of this process, permanent land acquisition is usually not required. 

State governments indicated that temporary land use rights, infrastructure support and other measures could be considered to facilitate projects in the proposed corridors. 

Read More: India, Japan Discuss Joint Exploration of Rare Earth Deposits in Rajasthan! 

Conclusion 

The meeting also examined possible technology partnerships and viability funding for early-stage permanent magnet manufacturing projects. Reports noted that several regulatory and operational issues remain under discussion before the corridor initiative progresses further. 

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