Odisha lands India's biggest mining FDI with Adani-IRH ₹1.08 tn deal

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

Billed as India's largest foreign direct investment (FDI) proposal in the mining and metallurgy sector and the biggest-ever 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 eastern state as a key player in the global aluminium supply chain while strengthening India's ambitions of becoming a global hub for value-added aluminium manufacturing.

The integrated greenfield project will comprise a four-million-tonnes-per-annum (mtpa) alumina refinery, a two-mtpa aluminium smelter, a 4,000-megawatt captive power plant and a one-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 phase. Once operational, the project is expected to generate around 53,500 jobs, including 35,000 during construction and another 18,500 across mining, refining, smelting and downstream manufacturing.

Karan Adani, Managing Director of Adani Ports and Special Economic Zone and Director of Adani Cement, said this would be the group's first venture in the aluminium sector and reflected its long-term confidence in Odisha as a manufacturing destination.

He said the proposed joint venture with IHC Group would deepen the partnership between the two companies while creating an integrated aluminium ecosystem that would generate employment, promote value-added manufacturing and enhance India's industrial competitiveness.

Syed Basar Shueb, Chief Executive Officer of IHC, said the investment aligned with the company's strategy of building long-term businesses around critical minerals that support industrial development, resilient global supply chains and the clean energy transition.

"The partnership with Adani Enterprises would help develop a world-class integrated aluminium project capable of creating long-term economic value," he said.

The MoU was signed in the presence of Chief Minister Mohan Charan Majhi, Industries Minister Sampad Chandra Swain and senior government officials.

Majhi described the investment as Odisha's entry into the global aluminium supply chain. He said the project would help build the complete aluminium value chain within the state, create greater value from Odisha's mineral resources and contribute to the state's long-term vision of Samruddha Odisha 2036 while supporting the national goal of Viksit Bharat 2047.

"The state government will extend all support that the project needs to ensure that it is commissioned in record time," he said.

The project marks a significant milestone for Odisha, which holds nearly half of India's bauxite reserves and is already the country's largest producer of alumina. While the state has long been a major supplier of raw materials, policymakers have increasingly emphasised the need to move up the value chain by attracting investments in aluminium smelting, downstream manufacturing and engineering products.

The proposed project will integrate the entire aluminium value chain—from mining and refining to finished products—within the state, increasing value addition, industrial output and employment.

The downstream manufacturing park is expected to attract manufacturers producing aluminium components for automobiles, railways, aerospace, power transmission, renewable energy, construction, packaging and advanced engineering industries.

Apart from generating direct employment, the project is expected to create thousands of indirect jobs in logistics, transport, engineering services, fabrication, maintenance and ancillary industries while providing a major boost to micro, small and medium enterprises (MSMEs).

The investment also expands the strategic partnership between Adani Group and IHC, which has grown steadily in recent years. Earlier this year, IHC Group company ePointZero entered into a joint venture with Adani Green Energy for renewable energy projects across India. The proposed aluminium venture marks the partnership's entry into the strategically important mining and metals sector.

Officials said the joint venture partners and the Odisha government will soon begin the next phase of the project, including land acquisition, statutory approvals and infrastructure planning. If implemented as planned, the project is expected to reinforce Odisha's position as India's metals capital while placing the state among Asia's leading destinations for large-scale aluminium manufacturing and foreign investment.

Sources said the alumina refinery will come up in Rayagada district, while the aluminium smelter will be set up in Sundargarh. The total land requirement for the two facilities will be around 7,300 acres.

"The chief minister has directed the formation of a special task force headed by the chief secretary to review the project every 15 days. It will be a priority project for the government. Land acquisition and all clearances will be expedited for early grounding of the projects," said Hemant Sharma, Additional Chief Secretary, Industries Department.