KOCHI: The Kerala Budget has proposed what is being widely seen as a game changer — the creation of a Rare Earth Corridor and a Defence Research Development Corridor, aimed at positioning the state as a strategic hub for critical minerals, defence innovation and advanced manufacturing.
Finance Minister K N Balagopal said Kerala’s coastal belt holds abundant reserves of rare earth elements such as thorium and scandium, which are vital for space research, defence, energy generation, aviation, electric vehicles, drones and medical equipment including CT scanners.
The Rare Earth Corridor will connect Vizhinjam port to Chavara and to Kochi, with a dedicated centre to be established near KMML at Chavara. Balagopal said it is expected to attract investments of Rs 42,000 crore and create around 50,000 jobs.
An additional Rs 50 crore has been allocated for developing a Defence Technology Innovation Hub that will interlink key defence and research institutions in the state. Prof K J Joseph, director of Gulati Institute of Finance and Taxation, termed the move a “game changer”, noting that once Kerala’s mineral wealth is strategically tapped, sustained revenue streams could follow.