This initiative is noted as the “largest foreign direct investment in Odisha’s history and the most significant FDI proposal in India’s metallurgy sector,” a senior government official explained.
The MoU was formalized between IHC and the Industrial Promotion and Investment Corporation of Odisha (IPICOL) in the presence of Chief Minister Mohan Charan Majhi and senior executives from the companies involved.
Adani Enterprises Ltd and International Resources Holding (IRH), a company under the IHC Group, will create a joint venture on a 50:50 basis to develop the integrated greenfield aluminium project in Odisha, as stated by the Adani Group.
Under the terms of the agreement, both partners will finance the investment through a mix of debt and equity for the initiative.
The project will include a 4-million tonne per annum (MTPA) alumina refinery, a 2-MTPA aluminium smelter, a 4,000-MW captive power plant, a 1-MTPA downstream manufacturing park, along with necessary infrastructure.
According to officials, the proposed facility is expected to generate direct and indirect employment opportunities for approximately 53,500 individuals across various sectors, including mining, refining, smelting, and downstream activities.
The logistics will likely be facilitated through Dhamra Port, a wholly-owned subsidiary of Adani Ports and SEZ, located on the Bay of Bengal, they mentioned.
Majhi emphasized that the project will present “unprecedented opportunities” for industrial advancement, job creation, and economic transformation in Odisha.
“This investment will allow Odisha to build a complete aluminium value chain, from mining and refining to smelting and downstream manufacturing,” stated the CM.
The large-scale project is planned to be executed in two phases, with investments of ₹66,000 crore and ₹44,000 crore, according to officials.
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While the precise location of the project has not yet been disclosed, industry insiders indicated that the alumina refinery is expected to be established in Rayagada district, whereas the smelter unit will be located in Sudargarh district.
On this occasion, Syed Basar Shueb, CEO of IHC, remarked: “Through IRH, we are developing an integrated mining and minerals business, investing in critical minerals to foster industrial development, enhance supply chain resilience, and promote the energy transition.” He added, “This partnership with Adani Enterprises aligns with that strategy and our collective goal to create a world-class integrated aluminium project that delivers enduring economic value.”
Karan Adani, Managing Director of Adani Ports and Special Economic Zone (APSEZ) and Director of Adani Cement, noted that the proposed project demonstrates the company’s faith in Odisha as a long-term manufacturing hub.
“The joint venture between Adani Group and IHC Group will further reinforce our strong partnership. Together with the Odisha government, we aim to build an integrated aluminium ecosystem that generates employment, advances value-added manufacturing, and enhances India’s industrial competitiveness,” he stated.
The downstream manufacturing park is anticipated to draw manufacturers that create components for various sectors such as transport, construction, power, packaging, renewable energy, and advanced engineering, fostering the growth of micro, small, and medium enterprises (MSMEs) throughout the state, as per the Adani Group statement.
