BHUBANESWAR: In what is being billed as India's largest foreign direct investment (FDI) in the metallurgy sector, Adani Enterprises Ltd (AEL) and Abu Dhabi-based International Resources Holding (IRH), an IHC Group company, on Thursday signed an MoU with the Odisha government to develop an integrated greenfield aluminium project at an estimated investment of about Rs 1.08 lakh crore (USD 11.5 billion).
Considered the largest FDI in Odisha's history, AEL and IRH will execute the project through a 50:50 joint venture. The MoU was signed in the presence of Chief Minister Mohan Charan Majhi, Industries Minister Sampad Chandra Swain, IHC Group CEO Syed Basar Shueb and Karan Adani, Managing Director of Adani Ports and Special Economic Zone (APSEZ).
The integrated complex will comprise a 4 million metric tonnes per annum (MMTPA) alumina refinery, a 2 MMTPA aluminium smelter, a 4,000 MW captive power plant and a 1 MMTPA downstream manufacturing park, along with supporting infrastructure.
The project will be implemented in two phases, with Phase I attracting around Rs 66,000 crore and Phase II another Rs 44,000 crore.
The venture is expected to generate around 53,500 jobs, including nearly 35,000 during the construction phase and another 18,500 across mining, refining, smelting and downstream manufacturing operations. Additional indirect employment is expected in logistics, engineering, maintenance and ancillary industries.
While AEL is the flagship company of the Adani Group, IHC is among the world's largest investment holding companies with interests across infrastructure, mining, manufacturing, energy, technology, healthcare and financial services.
Calling the investment a milestone, Chief Minister Majhi said the project would position Odisha as a global aluminium manufacturing hub by developing the entire value chain, from mining and alumina refining to smelting and downstream production, while supporting the state's Samruddha Odisha 2036 vision and contributing to Viksit Bharat 2047.
"The MoU is the beginning of a lasting global partnership," he said, assuring that the state government would provide all support and clearances required for the project.
Speaking on the occasion, Karan Adani described the MoU as historic and said the project was among the most significant aluminium ecosystem investments anywhere in the world.
“It will herald the beginning of a new economic chapter for Odisha, which will shape and accelerate the growth trajectory of Bharat," he said.
The APSEZ Managing Director said the Adani Group sees Odisha as the heart of eastern India's economic development because of its resources, resilience and ability to lead India's next wave of industrial growth. "This Rs 1.08 lakh crore project is a major step in that direction," he added.
IHC Group CEO Shueb described the partnership as part of the company's strategy to build integrated mining and minerals platforms supporting global supply chain resilience and the energy transition.
The downstream manufacturing park is expected to attract industries serving the transport, construction, power, packaging, renewable energy and advanced engineering sectors, creating opportunities for micro, small and medium enterprises (MSMEs) in Odisha.
Following the MoU, the joint venture partners and the Odisha government will initiate land acquisition, statutory approvals and infrastructure planning for the project.
IRH CEO Ali Rashed Al Rashdi, ePointZero CEO Mohamed Hesham, Adani Green Energy executive director Sagar Adani, chief secretary Anu Garg and additional chief secretary, Industries, Hemant Sharma were present during the MoU signing ceremony.