Union Budget 2026: Finance Minister Nirmala Sitharaman on Sunday announced dedicated rare-earth corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu. Presenting her ninth consecutive Budget, the finance minister said that the rare earth corridors will promote mining, processing, research and manufacturing.
"A scheme for rare-earth permanent magnets was launched in 2025. We now propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu in establishing dedicated rare-earth corridors," Sitharaman said in Lok Sabha.
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Rare earth minerals are 17 metallic elements vital for electronics, energy, and defence systems, valued for their unique magnetic and optical properties.
The government approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' with a financial outlay of Rs 7,280 crore in November last year. This was a first-of-its-kind initiative to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India.
To build the current rare-earth capacity, Sitharaman proposed establishing high-tech tool rooms by central public sector enterprises at two locations as digitally enabled automation service bureaus that locally design, test, and manufacture high-precision components at scale and at lower cost.
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She also proposed a scheme to enhance construction and infrastructure equipment, with the introduction of equipment to strengthen domestic manufacturing of high-value, technologically advanced CIE.
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To boost connectivity across the country, Sitharaman further announced seven high-speed rail corridors across key urban and economic centres, new freight links and the operationalisation of 20 national waterways over the next five years.
The proposed high-speed rail corridors include Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Siliguri. "In order to promote environmentally sustainable passenger systems, we will develop seven high-speed rail corridors between cities as growth connectors," the FM said.
Nirmala Sitharaman, in her Budget speech, also announced establishing a new dedicated freight corridor connecting West Bengal's Dangkuni in the east to Surat in the west.
The Budget also highlighted eco-tourism and nature-based travel. The government will develop sustainable mountain trails in Himachal Pradesh, Uttarakhand and Jammu and Kashmir, as well as in Araku Valley in the Eastern Ghats and Pudigai Malai in the Western Ghats.
In addition, special trails will be created for wildlife tourism. These include turtle trails along nesting sites in Odisha, Karnataka and Kerala, and bird-watching trails around Pulicat Lake.
(With Agencies Inputs)