New Delhi | December 2025
A parliamentary standing committee has urged the Indian government to significantly strengthen funding for IREL (India) Limited to accelerate domestic mining and processing of rare earth minerals, calling access to these materials a critical strategic priority.
With global demand for rare earth elements surging amid rapid growth in clean energy, electric vehicles, and advanced electronics, the committee warned that India must urgently reduce its reliance on imports to safeguard economic and technological security.
Rare Earth Minerals Called a Strategic Asset
In its latest report, the Parliamentary Standing Committee on Coal, Mines and Steel said rare earth minerals are no longer just industrial inputs but have become a strategic resource worldwide.
The panel emphasized that secure access to these minerals is essential for renewable energy generation, wind turbines, hybrid and electric vehicles, electric motors, solar panels, and high-end electronics.
Funding Push for IREL Recommended
The committee specifically recommended increased and assured funding for IREL, a central public sector enterprise operating under the Department of Atomic Energy.
IREL is currently India’s only company involved in the mining, processing, and refining of rare earth and atomic minerals, giving it a central role in strengthening the country’s mineral security.
The report suggested that budgetary provisions for IREL should be made directly through the Union Budget to enable long-term planning and capacity expansion.
Reducing Import Dependence a Key Goal
According to the panel, India must develop a comprehensive strategy focused on:
Identification and exploration of rare earth reserves
Domestic mining and processing
Reducing dependence on foreign suppliers
Strengthening international collaboration for advanced processing technologies
The committee also called on the Ministry of Mines to expand global partnerships for the transfer of critical rare earth processing expertise.
IREL’s Production Capacity and Operations
IREL currently operates with an annual processing capacity of 600,000 tonnes, producing key minerals such as:
Ilmenite
Rutile
Zircon
Sillimanite
Garnet
The company runs a rare earth extraction plant at Chhatrapur in Odisha and a rare earth refining unit at Aluva in Kerala.
Expansion Plans and R&D Focus
IREL is actively working on:
Increasing production capacity
Supporting downstream value-chain industries
Advancing research and development through a new facility in Kollam, Kerala
The parliamentary panel noted that strengthening IREL would position India as a self-reliant player in the global rare earth supply chain, especially at a time of rising geopolitical tensions and supply disruptions.
