Indian Metals and Ferro Alloys Ltd (IMFA) has successfully expanded its manufacturing capacity with the commissioning of the ₹800-crore greenfield ferro chrome plant at Kalinganagar in Odisha. According to reports from Business Standard, the new facility - Kalinganagar (KNR 1) - has an annual production capacity of 100,000 tonnes, bringing the company's total installed capacity to 534,000 tonnes per annum (tpa). The project was completed within 458 days of construction commencement on May 22, 2025, with the first furnace achieving production on August 25, 2026. The company expects to achieve 500,000 tpa annual ferro chrome output by FY28.
The new facility is strategically positioned to leverage IMFA's captive raw material resources, as reported by Business Standard. Unlike producers dependent entirely on external supplies, IMFA operates captive chrome ore mines at Sukinda and Mahagiri, with raw material requirements for enhanced smelting capacity to be met entirely through these mines. The company expects proximity to Odisha's chrome ore deposits, particularly those in the Sukinda region, to support the economics of its expanded operations. The facility is spread across 124.26 acres and comprises two 33 MVA submerged arc furnaces equipped with modern smelting technology, along with an 8.7 megawatt power generation unit designed to utilize furnace off-gas for energy recovery. The closed-furnace technology is designed to improve operational efficiency and reduce environmental emissions, with energy-efficiency measures combined with hybrid renewable power helping lower the carbon footprint.
According to Business Standard, the closed-furnace technology is designed to improve operational efficiency and reduce environmental emissions. The facility's energy-efficiency measures, combined with hybrid renewable power, would help lower its carbon footprint as it expands production. The construction phase generated around 450,000 man-days of employment, with the project expected to support around 1,500 direct and indirect jobs as operations expand. More than 1,000 people were deployed during the construction phase, demonstrating significant local economic impact. IMFA Managing Director Subhrakant Panda emphasized that the state-of-the-art closed furnaces are environment friendly and designed for maximum efficiency through off-gas power generation, which, along with hybrid renewable energy, will reduce the carbon footprint.
As reported by Business Standard, IMFA Managing Director Subhrakant Panda described the greenfield project as a significant milestone making the company India's largest producer of value-added ferro chrome and placing it among the foremost producers globally. The company operates manufacturing complexes at Therubali, Choudwar and Kalinganagar, with ferro chrome being a critical raw material for stainless steel production that gives stainless steel its corrosion resistance. The expansion builds on IMFA's existing operations and broader capacity-building programme covering ferro chrome production, chrome ore mining and renewable energy. The commissioning of KNR 1 marks a significant milestone in the Bhubaneswar-headquartered company's expansion strategy, which combines capacity addition, access to captive raw materials and investments in energy efficiency to strengthen its competitiveness in the domestic and international markets.
According to Business Standard, the greenfield project is part of a wider push to strengthen IMFA's presence in Kalinganagar, following the company's acquisition of Tata Steel's ferro chrome plant in November 2025 for ₹610 crore. The acquisition was completed in February 2026, with the transaction involving a base consideration of ₹610 crore, in addition to applicable GST and net working capital. The company is also setting up a 120-kilolitre-per-day grain-based ethanol plant at Therubali as part of diversification strategy, alongside captive power generation capacity comprising 200 megawatt of coal-based generation and 4.55 MWp of solar capacity. Incorporated in 1961, IMFA has developed an integrated ferro chrome business supported by captive chrome ore mines and power generation facilities, with the new plant being a key component of its strategy to improve ability to cater to domestic and international customers.
