LDF govt questions proposed rare earth corridor – ‘have to see if it’s meant to exploit Kerala’

In her Budget speech, Sitharaman said: “We now propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated Rare Earth Corridors to promote mining, processing, research and manufacturing”.

3 min readThiruvananthapuramUpdated: Feb 1, 2026 04:11 PM IST

In her Budget speech, Sitharaman said: “We now propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated Rare Earth Corridors to promote mining, processing, research and manufacturing”.

The CPI(M)-led Kerala government Sunday questioned the intent behind the Union Budget proposal to establish dedicated rare earth corridors, announced by Finance Minister Nirmala Sitharaman for 2026-27.

Reacting to the proposal, Kerala Industries Minister P Rajeeve said the state needed to examine whether the move was aimed at exploiting Kerala’s resources. “We have to see whether it is meant to exploit Kerala’s rare earth and minerals and to take the wealth out of the state. Certain amendments have been proposed which will help the Centre take direct control of the auction of minerals. Hence, we have to examine whether this proposal for the corridor is to take control over the minerals which are in the custody of the state,” he said.

Rajeeve pointed out that the state Budget for the coming fiscal had already announced a rare earth corridor focused on value addition.

Presenting the Budget on Thursday, Finance Minister K N Balagopal said Kerala’s coastline was rich in rare earth elements. “Kerala coastal line is abundant with rare earth elements like thorium, Scandium, etc., which are required in the fields of space research and defence. These are necessary in the areas of energy generation, defence and aviation sector, and production of electric vehicles, drones and CT scan equipment,” he said.

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Balagopal said a ‘Rare Earth Corridor’ connecting Vizhinjam port to Chavara in Kollam, and further to Kochi, was being planned. “A centre related to this will be established adjacent to KMML Chavara. By this Kerala is becoming the permanent magnet hub of the nation. Besides this, an investment of Rs 42,000 crore and 50,000 job opportunities are expected,” he said.

The state Budget also earmarked Rs 100 crore to establish a Rare Earth Critical Minerals Mission in partnership with Kerala Mineral and Metals Limited, KELTRON — both state undertakings — and the Non-Ferrous Materials Technology Development Centre under the Union Ministry of Mines.

Shaju Philip

Shaju Philip is a Senior Assistant Editor at The Indian Express, where he leads the publication's coverage from Kerala. With over 25 years of experience in mainstream journalism, he is one of the most authoritative voices on the socio-political, religious, and developmental landscape of South India. Expertise, Experience, and Authority Decades of Regional Specialization: Shaju has spent more than two decades documenting the "Kerala Model" of development, its complex communal dynamics, and its high-stakes political environment. Key Coverage Beats: His extensive reporting portfolio includes: Political & Governance Analysis: In-depth tracking of the LDF and UDF coalitions, the growth of the BJP in the state, and the intricate workings of the Kerala administration. Crime & Investigative Journalism: Noted for his coverage of high-profile cases such as the gold smuggling probe, political killings, and the state’s counter-terrorism efforts regarding radicalization modules. Crisis Management: He has led ground-level reporting during major regional crises, including the devastating 2018 floods, the Nipah virus outbreaks, and the Covid-19 pandemic response. ... Read More

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