Adani-IHC $11.5B Aluminium Plant in Odisha: India's Largest Metallurgy FDI

Adani-IHC $11.5B Aluminium Plant in Odisha: India's Largest Metallurgy FDI | Quick Digest
Adani Enterprises and UAE's International Holding Company (IHC) are investing $11.5 billion (₹1.08 lakh crore) in an integrated greenfield aluminium project in Odisha, India. This 50:50 joint venture marks India's largest metallurgy Foreign Direct Investment, poised to significantly boost the country's aluminium production and create over 53,500 jobs.

Key Highlights

  • Adani and IHC form 50:50 JV for Odisha aluminium project.
  • $11.5 billion investment planned for integrated greenfield facility.
  • Project includes refinery, smelter, power plant, and manufacturing park.
  • Set to be India's largest metallurgy FDI, boosting national capacity.
  • Expected to generate approximately 53,500 jobs in Odisha.
  • MoU signed with Odisha government on July 2, 2026.
Adani Enterprises Ltd (AEL), the flagship company of the Adani Group, has entered into a significant partnership with International Resources Holding (IRH), an Abu Dhabi-based natural resources investment platform and a subsidiary of International Holding Company (IHC) Group. On Thursday, July 2, 2026, the two entities signed a Memorandum of Understanding (MoU) with the Government of Odisha, India, to develop a colossal integrated greenfield aluminium project in the mineral-rich state. The proposed investment for this ambitious project stands at an estimated $11.5 billion, equivalent to approximately ₹1.08 lakh crore. This joint venture will see AEL and IRH holding equal 50:50 stakes, marking Adani Group's strategic entry into the aluminium sector. The deal is widely regarded as Odisha's largest Foreign Direct Investment (FDI) proposal and India's largest foreign direct investment in the metallurgy sector, underscoring its immense economic significance for both the state and the nation. The comprehensive project encompasses a 4 million metric tonnes per annum (MMTPA) alumina refinery, which will be established in the Rayagada district on 3,200 acres of land. Complementing this will be a 2 MMTPA aluminium smelter, a robust 4,000-megawatt (MW) captive power plant, and a 1 MMTPA downstream manufacturing park. These facilities, along with supporting infrastructure, will be developed in the Sundargarh district on 4,100 acres. Bauxite, the primary raw material, will be sourced from Odisha Mining Corporation's Sasubahumali mines and Adani's Kutrumali and Bahalda mines, ensuring a steady supply. The project is slated for development in two phases over an estimated period of five years. Phase I will involve an investment of approximately ₹66,000 crore, followed by Phase II with an additional ₹44,000 crore. The Adani portion of the investment will be financed through a combination of internal accruals and debt. Karan Adani, MD of Adani Ports & SEZ, stated that securing milestones and clearances would take 12 to 18 months, with project establishment requiring an additional 3.5 years. This massive undertaking is projected to be a significant job creator, with an estimated 53,500 direct and indirect employment opportunities. Approximately 35,000 jobs are expected during the construction phase, and another 18,500 will be sustained across mining, alumina refining, aluminium production, and downstream manufacturing operations once the project is operational. Furthermore, substantial indirect employment is anticipated in ancillary industries, logistics, engineering, and maintenance. Odisha Chief Minister Mohan Charan Majhi, present at the MoU signing, highlighted that this investment is a milestone for Odisha's industrialization, positioning the state to become a global hub for aluminium and value-added manufacturing. The project aligns with the state's 'Samruddha Odisha 2036' vision and contributes to the 'Viksit Bharat 2047' national goal. Syed Basar Shueb, CEO of IHC, emphasized that this partnership is part of IHC's strategy to build long-term platforms in industries crucial for the future global economy, strengthening supply chain resilience and advancing energy transition through its subsidiary IRH. This project will deepen value-added aluminium manufacturing in Odisha, thereby strengthening India's position in global aluminium supply chains. The downstream manufacturing park is expected to attract manufacturers producing components for various sectors, including transport, construction, power, packaging, renewable energy, and advanced engineering, fostering the growth of micro, small, and medium enterprises (MSMEs) across the state. The investment comes at a time when India is keen to boost domestic aluminium production to meet burgeoning demand, projected to reach 8.5 million metric tonnes by fiscal year 2030, and reduce reliance on imports of value-added metal products. The partnership also builds upon an existing relationship between Adani Group and IHC, which has previously collaborated on ventures in energy, transmission, and AI. Earlier in the year, IHC Group company ePointZero formed a joint venture with Adani Green Energy for renewable energy projects across India. The comprehensive verification confirms the accuracy and significance of the news initially reported by Moneycontrol.com, corroborated by multiple credible national and international news agencies.

Frequently Asked Questions

What is the total investment planned for the Adani-IHC aluminium project in Odisha?

The total planned investment for the integrated greenfield aluminium project in Odisha by Adani Enterprises and IHC is $11.5 billion, which is equivalent to approximately ₹1.08 lakh crore.

What kind of facilities will be part of this aluminium project?

The project is an integrated complex comprising a 4 million metric tonnes per annum (MMTPA) alumina refinery, a 2 MMTPA aluminium smelter, a 4,000-megawatt (MW) captive power plant, and a 1 MMTPA downstream manufacturing park.

How many jobs is the Adani-IHC aluminium project expected to create?

The project is expected to generate around 53,500 jobs. This includes approximately 35,000 jobs during the construction phase and an additional 18,500 jobs during its operational phase across various segments like mining, refining, smelting, and manufacturing.

Why is this project significant for India and Odisha?

This project is highly significant as it represents Odisha's largest Foreign Direct Investment (FDI) proposal and India's largest foreign direct investment in the metallurgy sector. It marks Adani Group's entry into the aluminium sector and is expected to substantially boost India's domestic aluminium production, reduce import reliance, and position Odisha as a global aluminium manufacturing hub.

When was the Memorandum of Understanding (MoU) for this project signed?

The Memorandum of Understanding (MoU) between Adani Enterprises, International Resources Holding (IHC Group company), and the Government of Odisha was signed on Thursday, July 2, 2026.

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