Adani Group, UAE's IHC to invest ₹1.1 lakh crore in Odisha aluminium project; MoU signed

The Odisha government on Thursday signed a memorandum of understanding (MoU) with UAE-based International Holding Company (IHC) and the Adani Group for setting up an integrated aluminium project involving an investment of about ₹1.1 lakh crore, a venture touted as the state's largest foreign direct investment (FDI) proposal.

The project, to be developed through a 50:50 joint venture between Adani Enterprises Ltd and International Resources Holding (IRH), an IHC Group company, is expected to generate more than 53,000 direct and indirect jobs during its construction and operational phases.

The MoU was signed between IHC and the Industrial Promotion and Investment Corporation of Odisha (IPICOL) in the presence of Chief Minister Mohan Charan Majhi and senior company executives.

Speaking at the signing ceremony, Adani Enterprises Managing Director Karan Adani said the proposed investment of $11.5 billion (nearly ₹1.08 lakh crore) would be among the world's largest investments in the aluminium sector.

"With a proposed investment of USD 11.5 billion, translating to nearly ₹1.08 lakh crore, this is among the most significant aluminium ecosystem investments anywhere in the world. But its true significance lies not only in the size of the investment. It lies in the depth of its impact," he said.

According to the company, the integrated greenfield project will comprise a 4-million-tonne-per-annum alumina refinery, a 2-million-tonne-per-annum aluminium smelter, a 1-million-tonne-per-annum downstream aluminium manufacturing park and a 4,000-MW captive power plant, along with a 400-MW green energy component.

The project will be developed in two phases with investments of ₹66,000 crore and ₹44,000 crore, a senior government official said.

Karan Adani said the project would generate nearly 35,000 jobs during construction and support around 18,500 jobs once operational.

“"For this project we expect all land and approvals to be in place in the next 12-18 months. Post that, it will take us 3-3.5 years to get the phase-I of the project up and running,” Adani said. “We are looking at 4-4.5 years for this project to be commissioned and up and running.”

The state government said the venture represents the largest FDI in Odisha's history and the biggest FDI proposal in India's metallurgy sector.

Chief Minister Majhi said the investment would create "unprecedented opportunities" for industrial growth, employment and economic transformation in Odisha.

"This investment will enable Odisha to develop the complete aluminium value chain, from mining and refining to smelting and downstream manufacturing," he said.

The investment will be funded through a mix of debt and equity by the joint venture partners.

While the project location is yet to be officially announced, reports suggest that the alumina refinery is likely to come up in Rayagada district and the smelter unit in Sundargarh district. Logistics support is expected through Dhamra Port, a wholly owned subsidiary of Adani Ports and Special Economic Zone.

Syed Basar Shueb, CEO of IHC, said the partnership reflects the group's strategy of building an integrated mining and minerals business focused on critical minerals and resilient supply chains.

"The proposed JV between Adani Group and IHC Group will further strengthen our robust partnership. Along with Odisha government, we will build an integrated aluminium ecosystem that creates jobs, expands value-added manufacturing and strengthens India's industrial competitiveness," Karan Adani said.

The company said the downstream manufacturing park is expected to attract industries catering to transport, construction, power, packaging, renewable energy and advanced engineering sectors, while also supporting the growth of micro, small and medium enterprises in the state.