If privatisation of Kerala's mineral wealth was the bullet that the Opposition LDF has been attempting to fire at the UDF government, Chief Minister V D Satheesan, in a swift offensive move, seized control of the gun and pointed it back at the CPM. 

"You created such a brouhaha around privatisation even though there was not a word on privatisation in the Budget. Weird thing is, you made all the noise after you had struck a deal with a private company in the mineral sector," the Chief Minister said while replying to the discussion on Demands for grants in the Revised Budget in the Assembly on Monday. 

The CM was referring to the agreement that Kerala Minerals and Metals Limited (KMML), Kerala's largest public sector company, was about to sign with Hyderabad-based Midwest Limited for processing its Monazite stocks. 

The Midwest deal was mentioned by industries minister P K Kuhalikutty, too, but in a lenient tone that suggested that he was reluctant to embarrass the opposition. "I am not trying to find fault with you but you had completed the process required to sign an MoU with a private company for Monazite cracking. You had floated a tender for this and had received many proposals, and it was Midwest that you chose. Before an MoU could be signed, the Assembly elections were notified," Kunhalikutty said.

The CM, on the other hand, was in no mood to spare the Opposition. "The industries minister spoke of the agreement in a soft polite manner. That is his style," Satheesan said.

Offence is Satheesan's default mode. "The 265th Board Meeting of KMML gave the go ahead for open short global tender based on Expressions of Interest. The LDF had invited EoI for private investment in the mineral sector," the CM said in a manner that suggested it was shocking.

He said the global tender was floated on January 20, 2026. Three offers were received: Amaya Smart Technologies Limited,  Midwest Limited, and Strident Mines and Minerals Private Limited. 

"And in the 267th Board Meeting on February 25, as you were on your way out, the KMML Board that is filled with government officials decided to issue work order to Midwest Limited, Hyderabad, for carrying out the project works as per the terms and conditions of the tender," Satheesan said, and eased into payback mode: "Isn't this enough? Should I say anything more?  But it was me who suffered the barbs of privatisation. The lie was spread that I was facilitating the exploitation of Kerala's mineral wealth by private parties. Those who were crucifying me were the ones who actually did it."

Midwest was chosen for the implementation of a pilot-stage plant for processing Monazite-rich residue to obtain the mixed rare-earth compounds and their separation into rare-earth elements like Neodymium (Nd), Praseodymium (Pr), Samarium (Sm), Gadolinium (Gd) and Yttrium(Y). 

However, Midwest had a problem with Clause 3.5 of the tender that said that the private entity had no right to claim the right of commercial scale up. Initially, KMML refused to amend the clause, saying it would lead to litigation.

Midwest then wrote to the additional chief secretary on February 16 to modify the clause considering its "huge investment" for the pilot study. Eventually, KMML agreed to grant "first-mover advantage" to Midwest by way of giving it the Right of First Refusal (ROFR), which is a contractual clause that obliges the owner (in this case KMML) to give preference to the entity (Midwest) if it plans to sell the asset (commercial plant involved in the value addition of Monazite). 

Both the industries minister and the Chief Minister said the Midwest deal was off. "Private players will not be involved in the mineral corridor," Kunhalikutty said.