Adani Enterprises Limited and Abu Dhabi based International Resources Holding, part of the IHC Group, signed a memorandum of understanding with the Odisha government on Thursday (2 July) to develop an integrated aluminium project in the state worth $11.5 billion, roughly Rs 1.08 trillion.
Described as the largest foreign direct investment proposal in India's mining and metallurgy sector, and the biggest FDI proposal Odisha has received, the venture will be executed through an equal joint venture between the two companies, positioning the state as a major player in global aluminium supply chains.
The greenfield project includes a four million tonne alumina refinery, a two million tonne aluminium smelter, a 4,000 megawatt captive power plant and a one million tonne downstream manufacturing park.
Investment will roll out in two phases, Rs 66,000 crore in the first and Rs 42,000 crore in the second, generating around 53,500 jobs overall.
Karan Adani, Managing Director of Adani Ports and Special Economic Zone, called it the group's first entry into aluminium and a sign of long-term confidence in Odisha.
Syed Basar Shueb, CEO of IHC, said, "The partnership with Adani Enterprises would help develop a world-class integrated aluminium project capable of creating long-term economic value."
The MoU was signed before Chief Minister Mohan Charan Majhi, Industries Minister Sampad Chandra Swain and senior officials. Majhi said, "The state government will extend all support that the project needs to ensure that it is commissioned in record time."
Sources said the refinery will be located in Rayagada and the smelter in Sundargarh, requiring nearly 7,300 acres.
Additional Chief Secretary Hemant Sharma said, "The chief minister has directed the formation of a special task force headed by the chief secretary to review the project every 15 days. It will be a priority project for the government. Land acquisition and all clearances will be expedited for early grounding of the projects."