The Odisha government on Thursday signed a ₹1.08 lakh crore ($11.5 billion) memorandum of understanding with Adani Enterprises Ltd and the UAE-based International Holding Company (IHC) through its subsidiary IRH to establish India's largest foreign direct investment in the mining and metallurgy sector. According to the latest regulatory filing dated July 2, this integrated greenfield project will be developed through a 50:50 joint venture between the Odisha government and the IHC–Adani Enterprises consortium, marking what is being described as the biggest-ever FDI proposal for Odisha. The facility will be an integrated unit combining smelting and refining capabilities with an annual capacity of more than 2 million tonnes, handling everything from smelting to refining over 2 million tons of aluminum each year, powered by its own captive power plant and connected through Adani's Dhamra Port. As per the filing, the MoU was signed in the presence of Chief Minister Mohan Charan Majhi, Sampad Chandra Swain, Minister for Industries and Skill Development & Technical Education, and senior company executives.
India currently holds a 3.8% global market share in aluminium production and is also the third-largest consumer of the metal globally. In FY25, India produced 4.2 million tonnes and consumed 5.5 million tonnes, with imports filling the gap. As reported by The Economic Times, the country's aluminium consumption is expected to rise significantly to 8.5 million tonnes by FY30, further to 18 million tonnes by FY40, and 28 million tonnes by FY47. The project aims to boost India's total aluminium capacity by nearly 50%, potentially helping the country achieve a 10% market share by FY47 and reduce import dependence. The investment will 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 proposed 2 million tonnes per annum (mtpa) plant in Odisha would also help India reduce its reliance on imported aluminium, a light-weight metal that is increasingly used in electric vehicles and the batteries that power them.
The integrated project comprises 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, making it one of the world's largest aluminium manufacturing complexes. As per the regulatory filing, the project will also include a 400-MW green energy component alongside the captive power plant. The investment will be executed in two phases - with about ₹66,000 crore earmarked for the first phase and another ₹44,000 crore for the second phase. The alumina refinery will be located in Rayagada district, while the aluminium smelter will be set up in Sundargarh district, with a total land requirement of around 7,300 acres. The project is expected to generate around 53,500 jobs across construction and operations, including 35,000 during construction and another 18,500 across mining, refining, smelting and downstream manufacturing. The downstream manufacturing park is strategically positioned to attract manufacturers producing aluminium components for automobiles, railways, aerospace, power transmission, renewable energy, construction, packaging and advanced engineering industries, supporting the growth of micro, small and medium enterprises (MSMEs) across the state.
Speaking at the signing ceremony, Adani Enterprises Managing Director Karan Adani said the proposed investment of $11.5 billion would be among the world's largest investments in the aluminium sector. According to the regulatory filing, following the signing of the MoU, the joint venture partners, Adani Enterprises and IRH, together with the Government of Odisha, will advance the next phase of the project, including land acquisition, statutory approvals and infrastructure planning. Karan Adani stated that "For this project we expect all land and approvals to be in place in the next 12-18 months. Post that, it will take us 3-3.5 years to get the phase-I of the project up and running." He added that "We are looking at 4-4.5 years for this project to be commissioned and up and running." The state government described the venture as the largest FDI in Odisha's history and the biggest FDI proposal in India's metallurgy sector. The investment will be funded through a mix of debt and equity by the joint venture partners, with the project site yet to be officially announced but reports suggesting the alumina refinery will come up in Rayagada district and the smelter unit in Sundargarh district.
Following the signing of the MoU, shares of Adani Enterprises closed 0.68% higher at ₹3,165 on the National Stock Exchange (NSE) on Thursday, as reported by CNBC TV18. As of July 2, 2026, Adani Enterprises has a total market capitalisation of ₹4.12 lakh crore according to NSE data. On Friday, shares were trading at ₹3,206.90, up ₹29.40 or 0.93% from Thursday's close of ₹3,177.50, with the stock opening at ₹3,192 and touching a high of ₹3,196.80. The stock is currently trading near its 52-week high of ₹3,229.60, hit just yesterday, and has returned over 40% year-to-date, significantly outperforming the Nifty 50's 6.90% decline over the same period. This marks the first venture in the aluminium sector for the Adani Group, as confirmed by Business Standard. Karan Adani, Managing Director of Adani Ports and Special Economic Zone and Director of Adani Cement, described this as reflecting the group's long-term confidence in Odisha as a manufacturing destination. The investment in the Odisha aluminium venture will further strengthen business ties between the Adanis and IHC, which first injected $2 billion in 2022 across three listed companies — Adani Enterprises, Adani Green Energy, and Adani Energy Solutions. Commenting on the development, Karan Adani stated that "The proposed JV between Adani Group and IHC Group will further strengthen our robust partnership. 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." Speaking on the occasion, Odisha 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."
