Vedanta plans to invest Rs 13,226 cr to increase its aluminium capacity

New Delhi: Vedanta Ltd plans to invest Rs 13,226 crore to expand its aluminium capacity from 2.4 MTPA to 3.1 MTPA by FY28, sources said. The expansion will take capacity to 2.75 MTPA by FY26 before reaching FY28 target.

Aluminium is critical for electric mobility, re-newable energy, urban infrastructure, and aerospace. Vedanta, which holds over 50 per cent of India’s do-mestic aluminium market, aims for the metal to remain the largest contributor to its $8–10 billion EBITDA target by FY28. BALCO, in which Vedanta is a majority stakeholder, is expected to join the one million tonne production club.

The company has cut aluminium production costs by nearly 24 per cent to $641 per tonne over 11 quarters through backward integration in alumina refining and coal mining. Fully captive operations provide re-silience amid global volatility and support low-cost manufacturing.

Industry experts say aluminium will drive India’s energy transition. Growing domestic demand, aided by initiatives like Make in India, Smart Cities, rural electrification, and Housing for All, positions Vedanta to secure India’s aluminium requirements while remaining competitive globally.