Adani Enterprises and International Resources Holding (IRH) have signed a Memorandum of Understanding with the Government of Odisha for the development of a greenfield aluminium project in the state.
The project, valued at Rs 1.08 lakh crore ($11.5 billion), will be executed through a 50:50 joint venture.
Adani Enterprises-IRH JV to build large-scale aluminium manufacturing facilities
Under the scope of the project, Adani Group’s incubator arm will develop large-scale aluminium production facilities with IRH, an Abu Dhabi-based natural resources company and an IHC company.
This includes an alumina refinery, aluminium smelting, a captive power generation plant, and downstream production facilities.
Odisha aluminium project may become state’s biggest FDI proposal
As per the regulatory filing, the greenfield project will be carried out in two phases, with investments of Rs 66,000 crore in the first phase and Rs 44,000 crore in the second phase. The company said the mentioned project is expected to be Odisha’s largest foreign direct investment proposal.
The total value of the project stands at Rs 1.08 lakh crore, it added.
The proposed project is expected to generate around 53,500 jobs in the state, adding to the state’s appeal as a manufacturing hub, the company said.
Odisha’s Minister of Industries, Sampad Chandra Swain, said, “During the construction period, the project is expected to create around 35,000 jobs, while the project’s mining, alumina refining, aluminium production, and downstream manufacturing operations are expected to support another 18,500 jobs.”
He added the partnership will also help with significant indirect employment generation.
Adani Group and IHC expand partnership with new aluminium venture
Earlier this year, Adani Green Energy had partnered with IHC group company ePointZero for the development of energy projects across the country.
“This new joint venture with IRH represents another important milestone in IHC’s previously announced multibillion-dollar investment strategy for India,” the company said in its statement.
Adani Group-IHC: Management Commentary
Speaking on the development, Odisha’s Chief Minister, Mohan Charan Majhi, said, “Already India’s leading hub for metals and mineral-based industries, the state is now poised to become a global centre for aluminium and value-added manufacturing. This investment will enable Odisha to develop the complete aluminium value chain, from mining and refining to smelting and downstream manufacturing, creating greater value within the state.”
Also speaking on the collaboration, Karan Adani, MD, Adani Ports and Special Economic Zone (APSEZ) and Director, Adani Cement, said, “Together with the Government of Odisha, we will build an integrated aluminium ecosystem that creates jobs, expands value-added manufacturing, and strengthens India’s industrial competitiveness.”
About Adani Enterprises
Adani Enterprises is the flagship company of Adani Group and is primarily engaged in the business of infrastructure development. The company is headquartered in Ahmedabad, Gujarat.