India strengthens rare-earth mineral exploration; Odisha among key states with strategic deposits

India is stepping up efforts to explore, mine, and strengthen the value chain of rare-earth minerals, with Odisha among several mineral-rich states identified as holding significant deposits, the Union Ministry of Coal and Mines informed Parliament.

In a written reply in the Rajya Sabha, Union Minister G. Kishan Reddy said the Atomic Minerals Directorate for Exploration and Research (AMD), functioning under the Department of Atomic Energy, is actively engaged in the exploration and augmentation of rare-earth group elements across the country. These efforts cover coastal and inland placer sands as well as hard rock terrains in multiple geological domains.

As of January 28, 2026, AMD has identified 136 deposits of beach sand minerals containing around 13.15 million tonnes of monazite, a key mineral hosting thorium and rare-earth elements. These deposits are spread across the coastal beach sands, teri or red sands and inland alluvium of Tamil Nadu, Kerala, Andhra Pradesh, Odisha, Maharashtra, Gujarat, Jharkhand and West Bengal. Together, these deposits hold an estimated 7.23 million tonnes of in-situ rare-earth oxide resources.

In addition, AMD has identified three rare-earth mineral deposits in hard rock formations in parts of Rajasthan and Gujarat, containing about 1.29 million tonnes of in-situ rare-earth oxide resources.

Monazite, the primary rare-earth bearing mineral in India, is classified as a prescribed substance due to its association with radioactive elements such as uranium and thorium. As a result, mining, processing, and refining of the mineral remain under government control. India is among a small group of countries globally with the necessary plant infrastructure, technology, and skilled manpower in the rare-earth sector.

However, the government noted that Indian rare-earth resources are generally low-grade and geologically complex, making extraction long, technically challenging, and costly. Moreover, domestic resources predominantly contain light rare-earth elements, and commercial mining has remained limited due to the lack of adequate technology and the absence of strong midstream and downstream industries in the rare-earth value chain.

To accelerate development, the Mines and Minerals (Development and Regulation) Act, 1957 was amended in 2023, empowering the Central government to auction blocks for 24 critical and strategic minerals, including rare-earth elements. A new mining concession in the form of an Exploration Licence has also been introduced. So far, 46 critical mineral blocks, including those with rare-earth elements, have been auctioned in six tranches, along with seven Exploration Licence blocks, two of which involve rare-earth minerals.

Further, the Union Cabinet approved the National Critical Mineral Mission in January 2025 to ensure long-term availability of critical minerals and to strengthen India’s value chain from exploration and mining to beneficiation, processing, and recovery.

To facilitate faster project execution, regulatory reforms have been introduced to streamline environmental and forest clearances for critical mineral projects, including provisions for compensatory afforestation on degraded forest land and exemptions from public hearings.

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In a major boost to downstream manufacturing, the Union Cabinet also approved a ₹7,280-crore scheme in November 2025 to promote the manufacturing of sintered rare-earth permanent magnets, targeting an annual capacity of 6,000 metric tonnes. The initiative aims to enhance self-reliance and position India as a significant player in the global rare-earth permanent magnet market.

With mineral resources spread across Odisha, southern, western, and eastern states, the government’s multi-pronged strategy is expected to strengthen India’s role in the global rare-earth ecosystem while supporting strategic, clean energy, and high-technology sectors.