Union Budget 2026: Odisha, Kerala, Andhra, TN to Set Up Rare Earth Minerals Corridors, Says FM

The Union Budget announced dedicated rare earth mineral corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to support mining and processing. The government also plans to establish three chemical parks using a cluster-based model.

Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026 on a Sunday, announced the creation of dedicated rare earth mineral corridors across Tamil Nadu, Odisha, Andhra Pradesh and Kerala, giving a strategic boost to mineral-rich states. This marks a historic moment, as a Union Budget was last presented on a Sunday in 1999 by then finance minister Yashwant Sinha.

The proposed corridors aim to strengthen India’s capabilities across the entire rare earth value chain, including mining, processing, research and advanced manufacturing. The announcement builds on the Rare Earth Permanent Magnet Scheme launched in November 2025, reinforcing India’s push to secure critical minerals essential for clean energy, electronics, defence and high-technology industries.

Alongside the rare earth initiative, Sitharaman also unveiled a plan to support three dedicated chemical parks, to be developed through a challenge-based, cluster-driven plug-and-play model. The move is intended to enhance domestic chemical production and reduce dependence on imports, aligning with broader self-reliance goals.

Ahead of the Budget presentation, Sitharaman collected the digital Budget tablet from the Finance Ministry and met President Droupadi Murmu at Rashtrapati Bhavan, following established protocol.

Together, the announcements underline the government’s focus on critical minerals, industrial capacity building and strategic manufacturing, positioning India to better compete in global supply chains while supporting economic growth in resource-rich states.