Reliance Industries Ltd (RIL) is evaluating a potential entry into aluminium metal production, according to United News of India (UNI), as the company explores ways to link its planned coal-gasification operations with energy-intensive metals manufacturing.

The development follows RIL’s acquisition of the Chintalapudi and Recherla coal blocks through commercial coal auctions in April 2026. On August 20, the company proposed an investment of around Rs 2.73  lakh crore ($31.4 billion) over 30 years to develop an integrated underground coal-gasification complex in Eluru district, Andhra Pradesh.

RIL had acquired the tender documents for Odisha’s Karlapat bauxite block, which spans about 3,100 hectares and has estimated resources of more than 200 million tonnes, market sources told UNI. However, Vedanta's subsidiary Bharat Aluminium Company Ltd (BALCO) emerged as the preferred bidder for the Karlapat bauxite block on August 7, after quoting a 175% auction premium. RIL’s interest in the block remains at the evaluation stage, while BALCO has emerged as the preferred bidder.

Coal gasification can produce synthesis gas for captive power and industrial applications, making it potentially relevant to energy-intensive alumina refining and aluminium smelting. UNI reported that industry sources see scope for integrating the two businesses, although Reliance has not confirmed any aluminium production plans.

In July, Adani Enterprises Ltd (AEL) announced plans to invest $11.5 billion in an integrated aluminium project in Odisha through a 50:50 joint venture with UAE-based International Resources Holding (IRH), adding to a broader wave of investment in India’s aluminium sector. The joint venture is expected to include a 4 million tonnes/year alumina refinery, 2 million tonnes/year aluminium smelter, 4,000 MW captive power plant and 1 million tonnes/year downstream manufacturing park.

These developments surface against the backdrop of Vedanta Aluminium, Hindalco Industries and NALCO continuing to dominate India’s primary aluminium market.

Industry sources feel that new entrants with access to bauxite, alumina, power, logistics and downstream capacity could build integrated positions across the value chain. For Reliance, however, the aluminium opportunity remains at an early stage, with no confirmed investment or production capacity announced.