Adani Group plans to invest Rs 57,575 crore in two Odisha projects
The Adani Group is planning to invest Rs 57,575 crore in Odisha with the state government approving its proposal to set up two projects — a 4 million metric tonnes per annum (MMTPA) Integrated alumina refinery and a 30 MMTPA iron ore (value addition) project.
“Odisha is one of our most strategic states where we have continue to invest and are always appreciative of the support we have received from Chief Minister Naveen Patnaik,” said Gautam Adani, Chairman, Adani Group.
“Metals are critical commodities in which our nation must be self-reliant, and these projects are aligned with our vision of Atmanirbharta. In addition, being a power intensive business, it is a great adjacency to the renewable energy that we are able to generate and help to produce the greenest alumina anywhere. Our capital investment will create 9,300 direct jobs and open up tens of thousands of indirect employment opportunities in Odisha,” Adani said in a statement today. The 4 MMTPA integrated alumina refinery, to be set up in the vicinity of potential bauxite reserves or operational mines, will produce smelter grade (Metallurgical Grade) alumina, which will help India move towards import substitution. The 30 MMTPA iron ore (value addition) project will comprise an iron ore beneficiation plant producing iron ore concentrate, a slurry pipeline for iron ore concentrate slurry and a dewatering/filtration & pellet plant to produce filter cake and pellet.
The iron ore beneficiation plant will be located in Deojhar, in northern Odisha’s Keonjhar district, while the pellet plant is to be set up in Dhamra, in the adjoining Bhadrak district. The slurry pipeline will run along the utility corridor of the roads between Deojhar and Dhamra, the company said.
The flagship company of the Adani Group got the approval to build the refinery and a captive power plant in Rayagada for an investment of $5.2 billion, according to a Twitter post on Wednesday by the office of Odisha Chief Minister Naveen Patnaik. The refinery will have an annual capacity of 4 million tonnes, according to another statement by the state government.
A representative for Adani Enterprises declined to comment on the Odisha project, or the company’s plans for its fledgling aluminum business.
The group will also set up a 175 megawatt capacity captive power plant (CPP) at Kashipur of Rayagada district.
Odisha possesses more than half of India’s bauxite reserve. The major bauxite deposits of Odisha are associated with Eastern Ghats Mobile Belt — which Rayagada along with neigbouring Koraput districts is part of. Bauxite reserves are situated at 900 metre to 1400 m above mean sea level.
Utkal Alumina International Limited, a wholly-owned subsidiary of Aditya Birla Group company Hindalco, is also present in the Kashipur area. The Utkal Alumina has 1.5 mtpa alumina refining capacity. The Adani Group company’s proposed refinery is expected to generate employment opportunities for over 7,750 people. According to Odisha government, the 10 industrial projects would collectively employ 24,047 people in the state.
The establishment of these plants will have an environmental impact since they will create ammonia and hydrogen using renewable resources, which will cater to the steel and fertiliser sector in Odisha, Industries secretary Hemant Sharma said.
Adani had set up a wholly-owned subsidiary — Mundra Aluminium — in December, signalling his aspirations in a sector that is dominated by heavyweights such as the Aditya Birla Group and the London-based Vedanta Resources. The tycoon, with the world’s biggest wealth gain this year to $126 billion, built his empire on agri-trading and ports, but has speedily diversified into airports, data centers and renewable energy, often moving in lockstep with the Centre’s policy priorities.
Adani had scaled up his nascent cement business overnight by acquiring Holcim India units for $10.5 billion in May, less than a year after setting up a cement subsidiary. He is now steadily building up his group’s metals portfolio after announcing plans for steel and copper plants earlier in the year.
Holcim, through its subsidiaries, holds 63.19 per cent in Ambuja Cements and 54.53 per cent in ACC (of which 50.05 per cent is held through Ambuja Cements).
In June, Adani Enterprises raised 60.7 billion rupees in a syndicated club loan for a 500,000 tonnes new copper refinery complex in Gujarat.
The company also announced a tie-up with South Korean steel major Posco in January to explore business opportunities in India, including the setting up of a green steel mill.
A representative for Adani Enterprises declined to comment on the Odisha project, or the company’s plans for its fledgling aluminium business.