The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, JUNE 10, 2025
Vedanta Aluminium, India’s largest aluminium producer, has signed a Memorandum of Understanding (MoU) with the Central Bank of India to provide collateral-free financing for customers through its subsidiary, BALCO. This initiative is aimed at empowering original equipment manufacturers (OEMs), including Micro, Small, and Medium Enterprises (MSMEs), by offering loans with minimal documentation and highly competitive interest rates — giving a strong impetus to India’s downstream metal sector.
MSMEs account for over 60% of Vedanta Aluminium’s downstream customer base. To enhance accessibility and ease of doing business, the financing program will be seamlessly integrated into Vedanta Metal Bazaar — the company’s digital e-superstore for aluminium products. This integration will enable swift loan disbursals, digital coordination, automated lien marking, and real-time invoice tracking, offering a streamlined and user-friendly experience.
The partnership further strengthens the financing ecosystem already in place through Vedanta Metal Bazaar, which currently connects more than 100 customers to financing from four partner banks and NBFCs. The platform is growing at a robust 30% year-on-year. With the addition of Central Bank of India — one of the country’s oldest and most widely-networked banks — access to affordable working capital is expected to become more democratized across India.
Under the MoU signed in Mumbai on Friday (June 4, 2025) , a comprehensive financing framework has been established, allowing OEMs and MSMEs to avail of loans ranging from ₹10 lakh to ₹10 crore. Higher limits may be approved based on business turnover, customer history, and recommendations from BALCO. The loans will be offered at some of the lowest interest rates in the industry, with a standard repayment tenure of 90 days and an additional grace period of 15 days. All services will be API-enabled for a fully digital and frictionless experience.
Commenting on the partnership, Rajiv Kumar, CEO of Vedanta Aluminium, said, “Our collaboration with the Central Bank of India represents a significant step forward in strengthening the aluminium value chain by making working capital more accessible and affordable for MSMEs — the backbone of India’s industrial landscape. This initiative not only enhances our customers’ ability to scale efficiently but also catalyzes the growth of a vibrant and competitive downstream ecosystem. With more than 60% of our downstream clientele being MSMEs, this partnership opens up new avenues for expansion and competitiveness. It aligns with our vision of creating a self-reliant, future-ready aluminium industry that contributes meaningfully to India’s economic growth, job creation, and global manufacturing leadership.”
This digital-first initiative reinforces Vedanta’s commitment to building a transparent, scalable, and inclusive financing ecosystem to support India’s growing manufacturing base.
Vedanta Metal Bazaar, the company’s innovative e-superstore, has revolutionized the way aluminium is bought and sold in India. Offering over 750 product variants, it features the full portfolio of Vedanta Aluminium’s offerings. Customers benefit from AI-driven price discovery, which ensures consistent value — even amid market volatility.
The platform can be accessed online at Vedanta Metal Bazaar and is also available as a mobile application on the Google Play Store and Apple App Store. Product offerings include ingots, billets, wire rods, primary foundry alloy (PFA), rolled products, flip coils, hot metal, and Restora, India’s first low-carbon aluminium. Customized solutions are also available to cater to specific customer needs.
Vedanta Aluminium, a business of Vedanta Limited, produced 2.42 million tonnes of aluminium in FY25 — more than half of India’s total production. The company is a recognized leader in value-added aluminium products used in core industrial applications. Ranked second globally in the S&P Global Corporate Sustainability Assessment 2024 for the aluminium sector, Vedanta continues to set benchmarks in responsible and sustainable business practices. Through its world-class smelters, alumina refinery, and power plants, the company is advancing the use of aluminium as the ‘Metal of the Future’ for a greener, more sustainable tomorrow.
