Relevance: GS I (Mineral Resources) & GS III (Security/Industrial Policy) | Source: The Hindu / Union Budget 2026
1. The Context: A Strategic Shield
In Union Budget 2026, the government announced the creation of “Rare Earth Corridors” in four coastal states: Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.
- The Goal: To build a domestic supply chain for Critical Minerals and break India’s heavy reliance on imports.
- The China Factor: India currently imports over 45% of its Rare Earth needs from China. While China mines 60% of the world’s supply, it controls a staggering 92% of the refining capacity (turning ore into usable metal), giving it a choke-hold on global tech.
2. Why These 4 States? (The Geology)
The choice is not random. These states have long coastlines rich in Beach Sand Minerals (Placer Deposits).
- The Key Ore: These sands contain Monazite, a reddish-brown phosphate mineral that is the primary source of Rare Earths (and Thorium) in India.
- From Sand to Chip: The corridors aim to move beyond just scooping up sand. The focus is on setting up advanced facilities to process these minerals for use in Electric Vehicles (Permanent Magnets), wind turbines, and missiles.
3. What are “Rare Earths”?
They are the “Vitamins of Modern Industry.”
- Definition: A group of 17 metallic elements (15 Lanthanides + Scandium + Yttrium).
- Misnomer: They are not actually “rare” in the earth’s crust; they are just hard to find in concentrated clusters, making extraction difficult and expensive.
UPSC Value Box
Concept / Institution | Relevance for Prelims |
| Monazite | A beach sand mineral containing Rare Earths and Thorium (a radioactive fuel). Because of the Thorium content, Monazite is a “Prescribed Substance” regulated by the Department of Atomic Energy. |
| IREL (India) Limited | Formerly Indian Rare Earths Limited. A PSU under the Department of Atomic Energy (DAE). It is the only entity in India legally permitted to process Monazite sands. |
| Minerals Security Partnership (MSP) | A US-led alliance of countries (including India) aiming to secure supply chains of critical minerals and reduce dependency on China. |
Q. With reference to ‘Rare Earth Elements’ (REEs), consider the following statements:
- They are a set of 17 metallic elements including the Lanthanide series, Scandium, and Yttrium.
- In India, Monazite sand is a major source of Rare Earths and Thorium.
- Private sector companies in India have the exclusive right to mine and process beach sand minerals containing Monazite.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Correct Answer: (b)
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