Parliamentary Panel Calls for Enhanced Funding to Strengthen IREL’s Rare Earth Mining Role – EQ
In Short : A parliamentary panel has recommended increased funding for state-owned IREL to accelerate rare earth exploration and mining in India. The proposal aims to strengthen domestic supply chains, reduce import dependence, and support strategic sectors such as clean energy, electronics, and defence. Enhanced financial support is expected to help IREL scale operations and advance national resource security goals.
In Detail : A parliamentary panel has suggested a significant boost in funding for state-owned IREL to prioritise rare earth exploration and mining activities in India. The recommendation reflects growing concern over the country’s dependence on imports for critical minerals that are essential for modern technologies and strategic industries.
Rare earth elements play a crucial role in the manufacturing of clean energy technologies, electric vehicles, electronics, and defence equipment. Recognising their importance, the panel has emphasised the need to build strong domestic capabilities to ensure long-term supply security and reduce vulnerability to global market disruptions.
IREL, as a public sector enterprise with experience in mineral extraction and processing, is seen as a key institution to lead India’s rare earth development efforts. Additional funding would enable the company to expand exploration activities, modernise mining infrastructure, and invest in advanced processing technologies.
The panel has also highlighted the importance of moving beyond raw material extraction to value addition within the country. Strengthening downstream processing and refining capabilities would help India capture greater economic value while supporting the development of domestic manufacturing ecosystems.
Environmental safeguards and responsible mining practices have been underlined as essential components of any expansion plan. The panel has stressed that increased funding should be accompanied by strict adherence to environmental norms, community engagement, and sustainable resource management.
Enhanced financial support could also help IREL accelerate research and development in rare earth separation and recycling technologies. Such innovation would not only improve efficiency but also reduce environmental impact and dependence on primary mining over time.
The recommendation aligns with India’s broader strategy to secure critical mineral supply chains in support of its clean energy transition and industrial growth. Rare earths are increasingly viewed as strategic assets, making domestic capability development a national priority.
Increased funding for IREL is expected to strengthen collaboration with research institutions, private players, and international partners. These partnerships could help bring in advanced technologies and best practices, accelerating project timelines and improving global competitiveness.
Overall, the parliamentary panel’s suggestion reflects a strategic shift toward resource self-reliance. By empowering IREL through enhanced funding, India aims to build a robust rare earth ecosystem that supports economic growth, technological advancement, and long-term national security.
