Forgotten 'Mini Ratna' Aims For Glory

IREL India, 75 years old, holds the key to India's electric future, and several other industries

- T. Surendar

If you visit the headquarters of IREL India Ltd, in central Mumbai, there is little to suggest how important this state-owned company is.

The dimly lit office is in a rundown building, with a small signage anyone can easily miss. The 30-square feet reception area has no room for visitors.

Operating under the department of atomic energy, which is headed by the Prime Minister, IREL is today 75 years old. And yet, till about a few months ago, no one would have heard about this 'miniratna'—a category of profitable public sector enterprises with greater financial and operational autonomy.

After decades, the company, formerly known as the Indian Rare Earths Ltd, is experiencing a rare moment of recognition—tasked with mining rare earth minerals, its work is of great importance to the defence establishment, and key to India's quest to accomplish a net zero carbon footprint by 2070.

The minerals the company mines are called 'rare' not because they are scarce but because it is difficult to find economically viable concentrated deposits. Rare earth minerals are used in the making of magnets, critical components in the motors that power electric vehicles and wind turbines. They are also used in lasers, MRI machines, vehicle oxygen sensors, ceramics and paint pigments.

In addition, IREL manufactures rare earth magnets, from a plant in Visakhapatnam in Andhra Pradesh. Turns out, the company is the sole Indian manufacturer of such magnets. And now, there is a global shortage, which is threatening to derail India's electric vehicle (EV) story. China is the leader in making these magnets and a new Chinese policy restricts its exports, a retaliatory measure against the aggressive tariff policies of US President Donald Trump.