Bhubaneswar: UAE-based International Holding Company (IHC) is set to sign a Memorandum of Understanding (MoU) with the Odisha government on Thursday for an integrated aluminium value chain project worth Rs 1.10 lakh crore.
The venture, in partnership with the Adani Group, is expected to represent the largest foreign direct investment (FDI) in Odisha’s history and the biggest FDI proposal in India’s metallurgy sector.
According to a report in The Economic Times, citing sources, the partners intend to fund the investment through debt and equity to build an aluminium smelter in Odisha with an annual capacity exceeding 2 million tonnes. The ambitious project will encompass the full aluminium production spectrum — from bauxite mining to a 4 million tonnes per annum (MTPA) alumina refinery, a 2 MTPA aluminium smelter, a 4,000 MW captive power plant, a 1 MTPA downstream manufacturing park, and associated infrastructure, including raw material linkages. Logistics are likely to be supported through Adani Ports’ Dhamra port on the Bay of Bengal, it added.
Government sources indicate the facility could create direct and indirect employment for around 53,500 people across mining, refining, smelting, and downstream activities. It aligns with Odisha’s strategic goal of emerging as India’s premier metals and minerals manufacturing hub.
Boost for India’s Aluminium Sector
India currently ranks as the world’s second-largest aluminium producer after China, with output of about 4.2 million tonnes in FY25, while domestic consumption stood at 5.5 million tonnes. Per capita consumption remains low at 3.4–3.9 kg, compared to the global average of 8–12 kg. The country is also the third-largest consumer globally.
The new project could expand India’s total aluminium capacity by nearly 50%. It would mark Adani Group’s second major foray into metals, following the commissioning of its copper smelter in Gujarat last year. The partners plan to fund the investment through a mix of debt and equity, though the exact split has not been disclosed.
Longer-term projections in India’s vision documents anticipate aluminium consumption rising sharply to 8.5 million tonnes by FY30, 18 million tonnes by FY40, and 28 million tonnes by FY47. To capture a 10% share of the global market by FY47, domestic capacity would need to scale up to around 37 MTPA from the current 3.8% global share.
