Vedanta Aluminium and Central Bank of India Join Forces to Offer Collateral-Free Financing for MSMEs

10th June 2025

  • This partnership will provide accessible, low interest working capital through BALCO and Vedanta Metal Bazaar, empowering India’s downstream metal industry.

New Delhi, June 10, 2025: Vedanta Aluminium, India’s largest aluminium producer, has entered a landmark partnership with the Central Bank of India to offer collateral-free customer financing through its subsidiary BALCO, at highly competitive interest rates. This collaboration is set to make working capital more accessible for the company’s customers, particularly micro, small, and medium enterprises (MSMEs) further providing a significant boost to the downstream metal industry. Over 60% of Vedanta’s downstream customers are MSMEs, and this number is steadily on the rise. The new financing program will be integrated directly into the Vedanta Metal Bazaar, the largest digital metals catalogue, ensuring quick disbursement, automated lien marking, digital coordination, and real-time invoice tracking.

Building on Vedanta’s existing financing program, which is already active via the Vedanta Metal Portal and connects customers with leading banks and Non-Banking Financial Companies (NBFCs), this new initiative brings enhanced benefits to customers. Over 100 customers are already availing financing through four different banks, with the program growing at an impressive 30% year-on-year. The addition of Central Bank of India, with its extensive national network, will make financing even more accessible to dealers and customers across the country.

Commenting on the partnership, Rajiv Kumar, CEO of Vedanta Aluminium, said, “Our collaboration with Central Bank of India marks a pivotal step in strengthening the metal value chain by making working capital more accessible and affordable for MSMEs who form the backbone of India’s manufacturing and industrial ecosystem. By enabling greater financial liquidity, we are not only empowering our customers to scale efficiently but also accelerating the development of a robust downstream sector. This initiative aligns with our vision of building a self-reliant, competitive, and future-ready aluminium industry that contributes meaningfully to India’s economic growth, employment generation, and global manufacturing leadership.”

Through this partnership, customers will now enjoy some of the lowest interest rates in the industry, with flexible loan sizes ranging from ₹10 lakh to ₹10 crore, and repayment terms of 90 days plus a 15-day grace period. The process has been designed to be simple and efficient, requiring minimal documentation and leveraging digital API integration with Vedanta Metal Bazaar for a seamless user experience.

This digital-first approach reflects Vedanta’s commitment to building a transparent, scalable, and inclusive financing ecosystem for India’s growing downstream manufacturing sector. The Vedanta Metal Bazaar platform, consistently rated highly by customers for its efficiency and ease of use, is a key enabler in this journey. This move also aligns with the vision of the Vedanta Group Chairman, who has long championed industrial growth as a cornerstone of national development and economic self-reliance.

Vedanta Aluminium, a business of Vedanta Limited, is India’s largest producer of aluminium, manufacturing more than half of India’s aluminium i.e., 2.42 million tonnes in FY25. It is a leader in value-added aluminium products that find critical applications in core industries. Vedanta Aluminium ranks 2nd in the S&P Global Corporate Sustainability Assessment 2024 world rankings for the aluminium industry, a reflection of its leading sustainable development practices. With its world-class aluminium smelters, alumina refinery and power plants in India, the company fulfils its mission of spurring emerging applications of aluminium as the ‘Metal of the Future’ for a greener tomorrow.

About Vedanta Limited:

Vedanta Limited, a subsidiary of Vedanta Resources Limited, is one of the world’s leading Oil & Gas and Metals company with significant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, and Aluminium & Power across India, South Africa and Namibia. For two decades, Vedanta has been contributing significantly to nation building. Governance and sustainable development are at the core of Vedanta's strategy, with a strong focus on health, safety, and environment. Vedanta has put in place a comprehensive framework to be the ESG leader in the natural resources sector. Vedanta is committed to reducing carbon emissions to zero by 2050 or sooner and has pledged $5 billion over the next 10 years to accelerate the transition to net zero operations. Giving back is in the DNA of Vedanta, which is focused on enhancing the lives of local communities. The company’s flagship social impact program, Nand Ghars, have been set up as model anganwadis focused on eradicating child malnutrition, providing education, healthcare, and empowering women with skill development. Under the aegis of the Anil Agarwal Foundation, the umbrella entity for Vedanta’s social initiatives, the Vedanta group has pledged Rs 5000 crore over the next five years on social impact programmes with a thrust on nutrition, women & child development, healthcare, animal welfare, and grass-root level sports. Vedanta and the group companies have been featured in Dow Jones Sustainability Index, and was conferred Frost & Sullivan Sustainability Awards 2020, Golden Peacock Award for excellence in Corporate Governance 2022 and certified as a Great Place to Work 2022. Vedanta Limited is listed on the Bombay Stock Exchange and the National Stock Exchange.

For more information, please visit www.vedantalimited.com

About Vedanta Aluminium Business:

Vedanta Aluminium, a business of Vedanta Limited, is India’s largest producer of aluminium, manufacturing more than half of India’s aluminium i.e., 2.37 million tonnes in FY24. It is a leader in value-added aluminium products that find critical applications in core industries. Vedanta Aluminium ranks 1st in the S&P Global Corporate Sustainability Assessment 2023 world rankings for the aluminium industry, a reflection of its leading sustainable development practices. With its world-class aluminium smelters, alumina refinery and power plants in India, the company fulfils its mission of spurring emerging applications of aluminium as the ‘Metal of the Future’ for a greener tomorrow.

For more information, please log on to www.vedantaaluminium.com

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This press release contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional, and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.