Reliance Industries Eyes Aluminium Production Entry; Explores Odisha Bauxite Block Amid Coal Gasification Push

Mukesh Ambani's Reliance Industries Ltd (RIL) is considering a potential entry into aluminium production, as the conglomerate explores opportunities in the metals sector, according to reports by Mint and UNI. The early-stage move may be linked to RIL's planned coal gasification operations, with the possibility of integrating aluminium production to enhance the economics of both businesses.

The reports state that RIL has purchased tender documents for Odisha's Karlapat bauxite block, which spans around 3,100 hectares and is estimated to contain more than 200 million tonnes of bauxite. Despite RIL's interest, Vedanta Aluminium's subsidiary BALCO emerged as the preferred bidder after securing the block through an auction with a premium of 175%.

RIL's interest in aluminium production coincides with the development of coal gasification projects in Andhra Pradesh, where the company has acquired two coal blocks — Recherla and Chintalapudi — and has planned an investment of Rs 2.73 lakh crore for an integrated underground coal gasification complex over a 30-year period. The integration of coal gasification with metals ambitions could support Reliance's potential aluminium venture, as alumina refining and aluminium smelting demand significant energy.

Such a move would potentially improve the commercial viability of RIL's coal gasification plans while introducing a new manufacturing vertical to the company. A RIL entry into India's aluminium sector would add another major conglomerate to the industry, alongside established producers like Vedanta Aluminium, Hindalco Industries, and state-run NALCO.