The Odisha government has entered into a memorandum of understanding (MoU) with UAE-based International Holding Company (IHC) and the Adani Group to develop an integrated greenfield aluminium project with a proposed investment of INR 1.10 lakh crore. The agreement was signed in the past week between IHC and the Industrial Promotion and Investment Corporation of Odisha (IPICOL) in the presence of Chief Minister Mohan Charan Majhi and senior officials. According to the state government, the proposal represents the largest foreign direct investment in Odisha's history and the biggest FDI proposal in India's metallurgy sector. 
Under the arrangement, Adani Enterprises Ltd and International Resources Holding (IRH), an IHC Group company, will establish the project through a 50:50 joint venture. The partners will finance the development through a combination of debt and equity. 
The integrated project will comprise a 4 million tonnes per annum (MTPA) alumina refinery, a 2 MTPA aluminium smelter, a 4,000 MW captive power plant, a 1 MTPA downstream manufacturing park and associated infrastructure. The project will be developed in two phases, involving investments of INR 66,000 crore and INR 44,000 crore respectively. 
Government officials said the development is expected to generate around 53,500 direct and indirect employment opportunities across mining, refining, smelting and downstream manufacturing activities. Logistics support for the project is expected to be provided through Dhamra Port, a wholly owned subsidiary of Adani Ports and Special Economic Zone (APSEZ), located on the Bay of Bengal. 
While the project location has not been formally announced, industry sources indicated that the alumina refinery is likely to be established in Rayagada district, with the aluminium smelter proposed for Sundargarh district. 
Chief Minister Mohan Charan Majhi said the investment would strengthen Odisha's industrial ecosystem by supporting the complete aluminium value chain, from mining and refining to smelting and downstream manufacturing. He stated that the project would contribute to industrial development, employment generation and economic growth within the state. 
Syed Basar Shueb, Chief Executive Officer of IHC, said the company, through International Resources Holding, was building an integrated mining and minerals business focused on critical minerals to support industrial development, improve supply chain resilience and advance the energy transition. He added that the partnership with Adani Enterprises reflected the companies' shared objective of developing an integrated aluminium project capable of generating long-term economic value. 
Karan Adani, Managing Director of Adani Ports and Special Economic Zone and Director of Adani Cement, said the proposed joint venture demonstrated the group's long-term confidence in Odisha as a manufacturing destination. He stated that, in partnership with the Odisha government and IHC Group, the project would support employment, expand value-added manufacturing and strengthen India's industrial competitiveness. 
According to the Adani Group, the downstream manufacturing park is expected to attract manufacturers producing components for sectors including transport, construction, power, packaging, renewable energy and advanced engineering, while creating opportunities for micro, small and medium enterprises (MSMEs) across the state. 
Speaking after the MoU signing, Karan Adani said the company was not seeking to compete with existing aluminium producers, noting that India continued to import aluminium despite the presence of major domestic manufacturers, indicating a gap between demand and supply. He added that land acquisition and other statutory approvals for the greenfield project were expected to be secured within the next 12 to 18 months, while both the alumina refinery and aluminium smelter were targeted for commissioning within approximately four to four-and-a-half years. He also confirmed that the company would participate in upcoming bauxite mine auctions to secure raw material supplies for the project. 
Source - PTI