Adani, Abu Dhabi’s IRH to invest $11.5 bn in Odisha

Adani Enterprises Ltd (AEL) and Abu Dhabi-based International Resources Holding (IRH), a unit of IHC group company, on Thursday signed a deal with the Odisha government to set up an integrated aluminium project for a proposed investment of $11.5 billion (about ₹1.08 trillion).

- HEMANT KUMAR ROUT

Billed as India’s largest foreign direct investment (FDI) in mining and metallurgy and the biggest FDI proposal for Odisha, the project will be developed through a 50:50 joint venture between AEL and IRH. It is expected to position the mineral-rich state as a key player in the global aluminium supply chain, while significantly strengthening India’s ambitions of becoming a global hub for value-added aluminium manufacturing.

The integrated greenfield project will comprise a 4 million tonnes per annum (mtpa) alumina refinery, a 2 mtpa aluminium smelter, a 4,000 megawatt (Mw) captive power plant (including 400 Mw of renewable energy) and a 1 mtpa downstream manufacturing park, making it one of the world’s largest aluminium manufacturing complexes.

The investment will be executed in two phases, with about 66,000 crore earmarked for the first phase and another ₹42,000 crore for the second. The project is expected to generate around 53,500 jobs, including 35,000 during construction and another 18,500 in mining, refining, smelting and downstream manufacturing operations. Karan Adani, managing director of Adani Ports and Special Economic Zone (APSEZ) and director of Adani Cement, said it is the company's first venture in aluminium and reflects the group's confidence in Odisha as a manufacturing destination.

He said the proposed joint venture with IHC Group will deepen their partnership while creating an integrated aluminium ecosystem.