Adani Enterprises and IHC announce a historic $11.5 billion investment in Odisha to build a massive integrated aluminium refinery and manufacturing hub
OdishaPlus Bureau
Adani Enterprises Ltd (AEL), the leading company of the Adani Group, and International Resources Holding (IRH), the natural resources investment platform of the Abu Dhabi-based International Holding Company (IHC) Group, entered into a Memorandum of Understanding (MoU) with the Government of Odisha. This agreement aims to establish an integrated greenfield aluminium project in Odisha, with a substantial investment of $11.5 billion (₹1.08 lakh crore).
AEL and IHC will create a joint venture with equal ownership (50:50) for the proposed initiative, marking the Adani Group’s entry into the aluminium industry.
According to officials from the Government of Odisha, this proposed investment is anticipated to be the largest Foreign Direct Investment (FDI) proposal in Odisha and the most significant foreign direct investment in India’s metallurgy sector.
The project will include a 4 million metric tonnes per annum (MMTPA) alumina refinery located in Rayagada district, spanning 3,200 acres, a 2 MMTPA aluminium smelter, a 4,000-megawatt (MW) captive power plant, and a 1 MMTPA downstream manufacturing park, all supported by necessary infrastructure in Sundargarh district, which covers 4,100 acres.
Bauxite will be obtained from the Sasubahumali mines of Odisha Mining Corporation and Adani’s two mines located in Kutrumali and Bahalda.
It is anticipated that approximately 53,500 jobs will be created during the construction and operational phases of the project. The Memorandum of Understanding (MoU) was signed in the presence of Mohan Charan Majhi and other esteemed guests.
The project will be executed in two phases, with an estimated investment of around ₹66,000 crore for Phase I and ₹44,000 crore for Phase II.The investment from Adani will be financed through internal resources and loans.
Karan Adani, Managing Director of Adani Ports & SEZ, stated that while it will take approximately 12 to 18 months to achieve milestones and obtain necessary clearances, an additional 3.5 years will be required to fully establish the project.
“The proposed project demonstrates our confidence in Odisha as a sustainable manufacturing hub. The joint venture between Adani Group and IHC Group will further enhance our strong collaboration,” he remarked.
“In partnership with the Government of Odisha, we aim to create a comprehensive aluminium ecosystem that generates employment, promotes value-added manufacturing, and bolsters India’s industrial competitiveness,” he further noted.
Odisha Chief Minister Mohan Charan Majhi commented, “Today signifies Odisha’s entry into the global aluminium supply chain. As India’s foremost hub for metals and mineral-based industries, the State is now set to emerge as a global centre for aluminium and value-added manufacturing.”
“This investment will empower Odisha to develop the entire aluminium value chain, encompassing mining, refining, smelting, and downstream manufacturing, thereby generating increased value within the State,” he concluded.
Syed Basar Shueb, the CEO of IHC, stated, “We are establishing long-term platforms in sectors that will shape the future of the global economy. Through IRH, we are creating an integrated mining and minerals enterprise, investing in essential minerals to bolster industrial development, enhance supply chain resilience, and promote the energy transition.”
“This collaboration with Adani Enterprises embodies that strategy and our mutual goal to develop a world-class integrated aluminium project that generates enduring economic value,” he added.
Odisha’s Industries Minister, Sampad Chandra Swain, remarked, “This investment signifies the increasing confidence in Odisha’s industrial ecosystem. The Government is committed to collaborating with all stakeholders to ensure timely approvals and facilitate the project’s execution.”
Officials noted that the investment will enhance value-added aluminium manufacturing in Odisha while reinforcing India’s position within global aluminium supply chains.
The downstream manufacturing park is anticipated to draw manufacturers that produce components for transportation, construction, power, packaging, renewable energy, and advanced engineering, thereby supporting the growth of micro, small, and medium enterprises (MSMEs) throughout the state.
Upon becoming operational, the project is anticipated to enhance India’s aluminium manufacturing sector while solidifying Odisha’s status as a premier destination for substantial industrial investment in Asia.
After the Memorandum of Understanding (MoU) is signed, the proposed joint venture partners, AEL and IRH, along with the Government of Odisha, will proceed to the next stage of the project, which includes land acquisition, obtaining statutory approvals, and planning infrastructure.
IHC ranks among the largest investment firms globally, boasting a market capitalization of $233 billion and a diverse portfolio of over 1,300 subsidiaries across technology, infrastructure, financial services, and consumer sectors.
Odisha, which houses some of India’s largest bauxite reserves, is already a significant producer of alumina and aluminium.