Archive · 26 Aug 2026
Reliance Explores Aluminium Production Through Odisha Bauxite and Coal Gasification
Reliance Industries is thinking about making aluminium, but it has not made a final decision.
The company is looking at a bauxite block in Odisha that could provide the main raw material for aluminium.
Bauxite is a type of rock used to make aluminium.
Reliance has reportedly bought the documents needed to study the block’s auction.
Another company called BALCO was named the preferred bidder for it.
Reliance is also planning large coal gasification projects in Andhra Pradesh.
Coal gasification can produce a fuel called syngas.
Reliance may study whether this fuel could provide energy for making aluminium.
If the plan moves forward, Reliance would become another major company in India’s aluminium industry.
Reliance Industries is evaluating a possible entry into aluminium production, but no final decision has been made.
The company reportedly purchased tender documents for Odisha’s Karlapat bauxite block, covering about 3,100 hectares.
The block is estimated to contain more than 200 million tonnes of bauxite; BALCO was the preferred bidder after quoting a 175% auction premium.
Reliance is developing coal gasification projects in Andhra Pradesh and has secured the Recherla and Chintalapudi coal blocks.
The proposed aluminium business could use fuel from coal gasification, while adding competition to India’s established aluminium producers.
- Who
- Reliance Industries, led by Mukesh Ambani, is evaluating an aluminium-production entry; other companies mentioned include BALCO, Adani Enterprises, Vedanta Aluminium, Hindalco Industries and NALCO.
- What
- Reliance is exploring an aluminium business and has reportedly purchased tender documents for Odisha’s Karlapat bauxite block.
- When
- The reports describe the proposal as being at an early stage, with no final decision taken.
- Where
- The bauxite opportunity is in Odisha, while Reliance’s coal gasification projects are in Andhra Pradesh.
- Why
- Reliance is examining whether fuel from coal gasification could support energy-intensive alumina refining and aluminium smelting and improve the economics of both businesses.
- Bauxite block
- Karlapat block in Odisha, covering around 3,100 hectares.
- Estimated bauxite
- More than 200 million tonnes.
- Preferred bidder
- BALCO, after quoting an auction premium of 175%.
- Coal blocks
- Recherla and Chintalapudi in Andhra Pradesh.
- Proposed investment
- Rs 2.73 lakh crore over 30 years for an integrated underground coal gasification complex.
- Adani aluminium plan
- A proposed $11.5 billion, 2-million-tonne-per-year Odisha project with International Holding Company.
- Existing producers
- Vedanta Aluminium has about 2.5 million tonnes of annual capacity, Hindalco Industries about 1.4 million tonnes and NALCO about 0.5 million tonnes.