South Kerala Critical Mineral Corridor project may bring over Rs 50,000 Cr industrial development to Kerala

THIRUVANANTHAPURAM: The South Kerala Critical Mineral Corridor project, included in V.D. Satheesan government's first budget, could bring industrial development worth more than Rs 50,000 crore to the state. The project is also expected to create thousands of employment opportunities. The initiative was included in the budget following the central government's critical mineral programme. An allocation of Rs 100 crore has been set aside for the project.

The Centre's Rare Earth Corridor project covers the coastal region stretching from Odisha to Kerala. In the Union Budget presented earlier this year, the Centre announced a Production Linked Incentive (PLI) scheme worth Rs 7,280 crore for the sector. Kerala has also been included in the project.

Although the announcement did not receive much attention earlier, Chief Minister V.D. Satheesan recognised its potential for Kerala's development and included it in the state budget. The project includes mining activities along the Kollam and Alappuzha coasts, a development centre in Thiruvananthapuram, and logistics facilities based around Vizhinjam.

Consortium to oversee project
The project will be managed by a consortium formed under the leadership of KMML, with participation from central organisations such as IREL Limited, Coal India Limited and Kerala's Keltron. The consortium will function under the supervision of the state government.

The rare earth mineral neodymium, which is required for manufacturing magnets used in electric vehicles, wind turbines, aircraft, mobile phones, drones and medical equipment, will be extracted from black sand. Monazite, which is found in large quantities in the waste left after producing titanium dioxide and titanium sponge from black sand, will be used as the source for extracting neodymium.

Private companies with the required technology will be able to set up industrial units in the state. Another area with development potential is the establishment of specialised centres to extract minerals such as thorium and scandium. Currently, around 80% of India's requirement of neodymium oxide is imported from China. The Centre aims to reduce this dependence by half by 2030. Kerala's mineral resources could play an important role in achieving this goal.

Kerala has 13.15 million tonnes of monazite reserves
According to the Geological Survey of India, the country has around 482.6 million tonnes of critical mineral reserves. Kerala accounts for 13.15 million tonnes of monazite reserves.