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BHUBANESWAR — In a major expansion of India’s heavy industry landscape, the Adani Group has entered into a historic partnership with Abu Dhabi-based International Holding Company (IHC) to establish a massive, integrated greenfield aluminium project in Odisha.
The joint venture involves a proposed investment of $11.5 billion (approximately ₹1.08 lakh crore), split equally under a 50:50 ownership agreement. Signed on Thursday in the presence of Odisha Chief Minister Mohan Charan Majhi, the Memorandum of Understanding (MoU) marks the largest-ever foreign direct investment (FDI) proposal in the state and India’s biggest-ever foreign influx into the metallurgy sector.
The Blueprint of India’s Largest Aluminium Complex
The project is set to introduce a fully integrated aluminium ecosystem, strategically consolidating the entire supply chain within Odisha—a state that boasts over half of India’s bauxite reserves.
The facilities will stretch across two primary locations:
**Rayagada District (3,200 acres): Home to a 4-million metric tonnes per annum (MTPA) alumina refinery. Bauxite will be sourced directly via local mining operations, including the Sasubahumali mines and Adani’s dedicated mines, utilizing advanced conveyor and rail links to optimize raw material transportation costs.
**Sundargarh District (4,100 acres): Houses a 2-MTPA primary aluminium smelter, a 1-MTPA downstream manufacturing park, and a heavy-duty power backstop consisting of a 4,000-megawatt (MW) captive power plant alongside a 400-MW green energy component.
The downstream industrial park is designed to attract advanced manufacturers making components for renewable energy, electric transport, construction, and power transmission, presenting a significant growth catalyst for local small and medium enterprises (MSMEs).
Economic Impact and Timelines
Speaking at the MoU ceremony, Karan Adani, Managing Director of Adani Ports and Special Economic Zone (APSEZ), noted that the project represents “ambition at a truly global scale.” Beyond the sheer material output, the venture is positioned as a primary employment engine for the region.
Project StageEstimated Jobs Created
Construction Phase~35,000 jobs
Operational Phase~18,500 jobs
The venture will be executed in two distinct stages, deploying roughly ₹66,000 crore for Phase I and ₹44,000 crore for Phase II. According to group officials, the consortium expects a window of 12 to 18 months to clear necessary regulatory milestones and secure land approvals, followed by a 3.5-year construction timeline before the first industrial outputs roll off the line.
Strategic Context: Feeding India’s Infrastructure Appetite
This massive bet marks the Adani Group’s official entry into the aluminium industry, hot on the heels of its copper smelting debut in Gujarat. For Adani, control over primary metals offers absolute supply chain security for its fast-growing empire of ports, airports, solar manufacturing, and logistics.
For IHC—the powerful investment vehicle chaired by Abu Dhabi’s royal family—the massive venture signals a sustained, long-term focus on Indian industrial assets.
As India’s domestic consumption of aluminium is projected to skyrocket from its current base to 8.5 million metric tonnes by 2030, this mega-facility could single-handedly boost the nation’s primary metal capacity by nearly 50%, altering global metal supply lines and cementing Odisha’s status as an Asian industrial powerhouse.
