Odisha seeks Bengal partnership as India aims 37Mt aluminium capacity by FY47

As India advances to deepen its footprint in the global aluminium platform, Odisha is aiming to strengthen its aluminium industry connection with West Bengal. Union Coal and Mines Minister G. Kishan Reddy expressed interest in joining Odisha’s strong aluminium production base with Bengal’s downstream manufacturing potential, partnering the two eastern states in building a broader aluminium ecosystem.

“Today, Odisha is a powerhouse when it comes to the aluminium industry, with 67-72 per cent of the production coming from the state. Bengal can become a natural downstream partner,” Reddy stated at a roadshow organised by the National Aluminium Company (NALCO) and Assocham for the Angul Aluminium Park in Odisha.

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Odisha-Bengal link to back India’s aluminium expansion

Reddy noted that aluminium is set to play a larger role across industries including defence, railways, electric vehicles, mobile phones and aircraft. Meeting this growing requirement, however, will require a substantial increase in domestic aluminium capacity.

According to a vision document of the Union Ministry of Mines, India’s aluminium production capacity needs to reach 37 million tonnes per annum (MTPA) by FY47, compared with around 4.2 MTPA in FY24. However, despite reaching the requisite level, the country could still face a shortfall of around 7 MTPA, the document estimates.

At present, India accounts for only 3.8 per cent of global aluminium trade. Reddy mentioned that the Centre’s aim is “to increase this to 10 per cent by FY47.”

Against this backdrop, closer integration between aluminium-producing regions like Odisha, coupled with Bengal’s potential as a downstream partner, places the eastern region in focus as India seeks to expand its manufacturing base.  

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Coal supply: A key power-sector concern

Reddy also addressed concerns over coal availability for the power sector, and stated, “There is no shortage of coal” and supply is ample but “power demand has gone up by 12-15 per cent.”

“Generation from hydroelectric projects has also gone down. As a result, there is a significant demand for thermal power,” he mentioned.

Moreover, coal production has been affected by rainfall. This, as Reddy stated, prompted the government to increase supplies through additional railway rakes, raising the number of power plants with critical coal stocks from 45 at the beginning of the month to 82.

However, peak power demand has started easing as temperatures in northern India have fallen below normal amid frequent rainfall in recent days.

Reddy added that the Centre and the state would discuss steps to curb prohibited mining and improve revenue collection from the coal sector. Referring to the improved coal mining scenario in West Bengal, he expressed anticipation in boosting the aluminium industry via the Odisha-Bengal aluminium pact.

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