Odisha lands largest-ever FDI as Adani-IHC JV signs ₹1 lakh cr aluminium project

IN the largest strange verbatim investment funds in Odisha’s story, the Mohan Majhi authorities on Thursday signed a Memorandum of Understanding (MoU) with the Adani Group and Abu Dhabi-based International Holding Company (IHC) Group for an $11.5 billion (around ₹1.10 lakh crore) integrated aluminium project spanning bauxite mining, alumina refining, aluminium smelting, and downstream manufacturing.The agreement was signed at the state secretariat between the state’s industrial promotion agency, IPICOL, and a newly formed 50:50 joint venture between Adani Enterprises Limited (AEL) and International Resources Holding (IRH), the natural resources investment platform of IHC Group. Chief Minister Mohan Charan Majhi, Industries Minister Sampad Chandra Swain, IHC Group CEO Syed Basar Shueb, and Adani Ports and Special Economic Zone Managing Director Karan Adani were present.The proposed greenfield project will include bauxite mining, an alumina refinery in Rayagada district, an aluminium smelter in Sundargarh district, captive power generation, downstream aluminium manufacturing, and supporting infrastructure. The project will require around 7,300 acres across the two locations.Calling the investment a milestone in Odisha’s industrialisation, Majhi said it would help the state move towards value-added manufacturing while generating large-scale employment.“Our efforts to build a prosperous, modern, inclusive and industrially advanced Odisha by 2036 are progressing successfully. This partnership combines Odisha’s rich natural resources and skilled workforce with the capital and technology of the Middle East, paving the way for long-term economic growth,” he said.According to officials, the project is expected to generate around 35,000 jobs during the construction phase and another 18,500 after commissioning, taking the total direct and indirect employment potential to more than 53,500.Karan Adani said Odisha’s vast mineral resources made it one of India’s most attractive destinations for metals manufacturing. He noted that the state has the country’s largest bauxite reserves and accounts for more than half of India’s iron ore resources.He said Odisha had evolved from being primarily a supplier of raw materials to a value-added manufacturing hub and that the proposed investment would further integrate the state’s economy with global industrial value chains.To fast-track implementation, the government announced the formation of a special task force headed by the Chief Secretary to review progress every 15 days.The Adani Group already has a significant presence in Odisha through its port business. It operates Dhamra Port in Bhadrak district, acquired in 2014, and Gopalpur Port in Ganjam district, acquired in 2024. Dhamra, one of India’s deepest all-weather ports, serves the mineral-rich hinterland of Odisha, Jharkhand, Chhattisgarh, and West Bengal, while Gopalpur handles bulk cargo, including iron ore, alumina, coal, limestone, and agricultural commodities, catering largely to southern Odisha and parts of Andhra Pradesh.