Mumbai: Billionaires Gautam Adani, Mukesh Ambani, Kumar Mangalam Birla, Naveen Jindal and Anil Agarwal are among the industrialists eyeing Odisha’s Karlapat bauxite block, one of India’s largest untapped bauxite deposits, according to people familiar with the matter.
The block, located in the state’s Kalahandi district, was put up for auction by the state government on 29 May along with 10 other mineral blocks. All 11 blocks have been classified as virgin, meaning they have never been mined.
Adani Enterprises, Reliance Industries, Hindalco Industries, Vedanta Aluminium, Naveen Jindal-backed Powermech and state-run Coal India have purchased tender documents for the Karlapat block, the people cited above said on condition of anonymity.
According to commodities market intelligence firm BigMint, the block contains more than 200 million tonnes of bauxite spread over more than 3,100 hectares, making it the largest bauxite reserve on offer in the current auction.
“Buying the tender document does not guarantee participation in the auction, but it does signal intent,” said Dhruv Goel, chief executive officer of BigMint.
Mint could not independently ascertain which of the companies that purchased tender documents eventually submitted bids.
Queries emailed to Adani Enterprises, Reliance Industries, Hindalco, Vedanta Aluminium, Naveen Jindal Group, Coal India and the Odisha Directorate of Mines were unanswered till press time.
Why the high interest
The heightened interest comes as India’s aluminium producers race to secure long-term raw material supplies amid a fresh wave of capacity expansion. With aluminium demand expected to grow steadily, driven by infrastructure, renewable energy, electric vehicles and aerospace, access to high-quality bauxite deposits is increasingly strategic.
For the Adani Group, which is preparing to enter the aluminium business, securing captive bauxite resources will be critical to minimise dependence on third-party supplies.
On 2 July, the conglomerate announced plans to invest about $11.5 billion in a 2 million tonnes per annum (mtpa) aluminium project in Odisha in partnership with International Holding Company (IHC), putting it in direct competition with established players such as Vedanta and Hindalco.
Vedanta Aluminium is India’s largest aluminium producer with annual capacity of 2.5 mtpa, followed by Hindalco at 1.4 mtpa and state-owned National Aluminium Company Ltd (Nalco) at 0.5 mtpa. The proposed Adani project would significantly reshape competition in the sector.
Both Vedanta and Hindalco are also expanding capacity. Vedanta Aluminium plans to up its capacity to 6 mtpa in the next three years, while Aditya Birla’s metals flagship Hindalco is expanding its aluminium smelting capacity by adding 360,000 tonnes per annum at its Aditya Aluminium complex in Odisha.
“With aluminium demand and production capacity on the rise, the auction of bauxite mines has become increasingly critical for long-term raw material security. Strategic blocks such as Karlapat are expected to attract significant interest from major industry players,” said Goel.
He said Karlapat is strategically important for Hindalco and Vedanta as they expand capacity, while it would provide the Adani Group with long-term bauxite supplies for its planned smelter. Coal India, meanwhile, could use the opportunity to diversify its mining portfolio, Goel added.
Karlapat is expected to attract one of the highest bid premiums seen in recent bauxite auctions. While the reserve price has been fixed at a 35% premium, the final premium could be significantly higher given the block's size and strategic importance, Goel said.
BigMint data shows that 43 bauxite block auctions have been held across India between 2017 and 2026. Odisha has consistently attracted the most aggressive bidding, with winning premiums ranging from 72.25-126.76%.
Large deposits such as Sijimali and Kutrumali have attracted intense competition—won by Vedanta and Adani Group, respectively—suggesting companies are willing to pay a steep premium for long-life, high-quality bauxite assets.
Karlapat has remained undeveloped for years because of its proximity to the ecologically sensitive Karlapat Wildlife Sanctuary.
Besides Karlapat, the state has also offered the Nunapaimali bauxite mining lease block in Rayagada district, along with three other bauxite blocks under composite licences that allow exploration before mining begins.