New Delhi, Feb 1 (UNI) The union Finance Minister proposed an outlay of Rs 20,000 crore over the next five years for Carbon Capture Utilization and Storage (CCUS) technologies to scale up and achieve higher readiness levels in end-use applications.
Presenting the proposal during her ninth consecutive Budget speech in Parliament, Sitharaman said that in line with several initiatives for large-scale enhancement of public infrastructure, the Government will continue to focus on developing infrastructure in cities with populations over five lakh, particularly Tier II and Tier III cities, which have expanded to become important growth centres.
To further scale up manufacturing in strategic and frontier sectors, the Finance Minister also proposed the launch of Biopharma SHAKTI, India Semiconductor Mission (ISM) 2.0, the Electronics Components Manufacturing Scheme, and dedicated Rare Earth Corridors in Odisha and Kerala.
Sitharaman announced the creation of a rare earth minerals corridor covering Tamil Nadu, Odisha, Andhra Pradesh and Kerala, underscoring the strategic importance of strengthening India’s critical minerals supply chain and building domestic capabilities in high-technology sectors.
Sitharaman said the corridor would focus on exploration, processing and value addition of rare earth elements, which are essential for electronics, renewable energy, electric mobility and defence manufacturing.
The announcement comes amid stepped-up efforts by India to strengthen its rare earth resources and build a complete domestic value chain to reduce dependence on imports.
The experts say that India’s growing demand for rare earth elements is closely linked to the rise of new technologies, noting their critical role in magnets used for electric vehicles, wind turbines and advanced manufacturing.
They also said that the import dependence has become increasingly difficult due to global supply constraints and export restrictions by major producing countries, highlighting the need to develop the entire value chain domestically.
In this context, the central government recently approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets with a financial outlay of ₹7,280 crore. The scheme aims to establish 6,000 metric tonnes per annum of integrated rare earth permanent magnet manufacturing capacity in India, covering the full chain from rare earth oxides to finished magnets.
Officials said the initiative is intended to enhance self-reliance in a critical input for electric vehicles, renewable energy systems, electronics, aerospace and defence, and to position India as a key player in the global permanent magnet market. The scheme also aligns with national objectives such as Atmanirbhar Bharat, resilient supply chains for strategic sectors and the Net Zero 2070 vision.
Presenting the Budget in Lok Sabha, Sitharaman said the government’s core strategy continues to be anchored in Aatmanirbharta, with large-scale public investment and structural reforms driving growth. “Keeping Aatmanirbharta as a lodestar, we have built domestic manufacturing capacity, energy security and reduced critical import dependencies,” she said.
Making a major infrastructure announcement, the Finance Minister said the government will build seven high-speed corridors as part of its plan to accelerate logistics, manufacturing and regional development. “The main focus is to develop economic cities,” Sitharaman said, underlining the government’s intent to cluster industry, infrastructure and urbanisation for faster growth.
