Kerala plans to develop a rare earth corridor linking Vizhinjam port, Chavara, and Kochi, which could attract investments of ₹42,000 crore, Finance Minister K N Balagopal announced in the Budget on Thursday.
The corridor will include a center near KMML Chavara, positioning Kerala as the nation’s permanent magnet hub. The project is expected to generate 50,000 jobs. Additionally, ₹100 crore is allocated to establish a Rare Earth Critical Minerals Mission in partnership with KMML, KELTRON, and NFTDC.
KMML is a state-owned titanium dioxide and mineral sands producer based in Chavara, KELTRON is the state-run electronics and tech company, and NFTDC is an autonomous R&D body under the Ministry of Mines.
On clean energy, the government reaffirmed its Hydrogen Valley initiative, aimed at building a hydrogen-based energy economy. Cochin International Airport, in partnership with BPCL, has already launched a green hydrogen dispensing unit. The Centre has approved hydrogen valley innovation clusters in the state, and Kerala secured ₹10,000 crore in renewable energy investment from Greenko at the World Economic Forum.
The budget raised the allocation for the power sector to ₹1,309.84 crore, with ₹1,238.80 crore for Kerala State Electricity Board projects and ₹71.04 crore for renewable energy. Key allocations include ₹5 crore each for battery storage and pumped storage projects, ₹31.22 crore for smart meters, and ₹150 crore for externally aided projects such as Energy Efficiency Indian Grid and Green Energy Corridor Phase II. ANERT’s funding increased to ₹53.18 crore for renewable energy programs.
The budget also provides ₹7.18 crore for green hydrogen projects and ₹7 crore for solar installations in unelectrified tribal areas.
