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

Mukesh Ambani-led Reliance Industries Ltd (RIL) is evaluating a possible entry into aluminium production as the conglomerate explores opportunities in the metals sector, according to reports by Mint and UNI.

The proposed move is at an early stage and no final decision has been taken. Sources cited in the reports said Reliance is examining whether aluminium production could be integrated with its planned coal gasification operations, potentially improving the economics of both businesses.

Reliance explores aluminium and bauxite opportunity

Market sources cited by UNI said RIL has purchased tender documents for Odisha’s Karlapat bauxite block, spread over around 3,100 hectares and estimated to hold more than 200 million tonnes of bauxite.

Reliance and the Adani Group had earlier been reported to have shown interest in the block, although Vedanta Aluminium’s subsidiary BALCO emerged as the preferred bidder after quoting an auction premium of 175%.

Reliance’s interest comes as it develops coal gasification projects in Andhra Pradesh. The company has secured two coal blocks in the state — Recherla and Chintalapudi — and has proposed an investment of Rs 2.73 lakh crore over 30 years for an integrated underground coal gasification complex.

Coal gasification could support metals ambitions

Coal gasification converts coal into syngas, which can be used for power generation or as an industrial fuel. Since alumina refining and aluminium smelting require substantial amounts of energy, Reliance could potentially use fuel generated through gasification to support a future metals business.

Industry sources said such integration could improve the commercial viability of Reliance’s coal gasification plans while creating a new manufacturing vertical.

A potential Reliance entry would add another major conglomerate to India’s aluminium sector. Adani Enterprises announced plans in July to invest around $11.5 billion in a 2-million-tonne-per-year aluminium project in Odisha with UAE-based International Holding Company.

India’s established producers include Vedanta Aluminium, with around 2.5 million tonnes of annual capacity, Hindalco Industries at about 1.4 million tonnes and state-run NALCO at roughly 0.5 million tonnes.