Odisha commits local bauxite for Vedanta’s Lanjigarh alumina refinery as ₹1 trillion aluminium push gathers pace

Odisha’s aluminium story is gaining another significant raw-material link, with the state government committing to provide local bauxite for Vedanta’s alumina refinery at Lanjigarh in Kalahandi.

The commitment came during a September 26 meeting between Odisha Chief Minister Mohan Charan Majhi and Vedanta Chairman Anil Agarwal, as both sides discussed accelerating the company’s proposed INR 1 trillion (USD 10.42 billion) aluminium investments in the state.

The focus on bauxite security is particularly relevant for Vedanta’s integrated aluminium operations in Odisha, where Lanjigarh serves as a major alumina-producing asset. The latest commitment comes alongside plans for new large-scale aluminium and alumina capacity in the state.

INR 1 trillion investment, 9 MTPA proposed capacity

Vedanta’s proposed investment programme includes a 3 million tonnes per annum (MTPA) aluminium smelter in Dhenkanal and a 6 MTPA alumina refinery in Rayagada.

The Dhenkanal smelter is also planned to supply hot metal to Vedanta’s downstream aluminium parks in Odisha, creating greater integration between primary aluminium production and downstream manufacturing. Once the proposed projects are implemented, Vedanta’s cumulative aluminium production capacity is expected to reach 6 MTPA.

The latest developments also include a proposed 1 MTPA brownfield expansion of the Jharsuguda aluminium smelter, adding another potential capacity expansion to Vedanta’s Odisha footprint.

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Bauxite security moves back into focus

Reliable bauxite availability is fundamental to sustained operations and capacity utilisation for an alumina refinery. Against this backdrop, Odisha’s commitment to local bauxite supply for Lanjigarh adds an important raw-material security dimension to Vedanta’s expansion plans.

Vedanta has also been pursuing mineral exploration and domestic resource development as part of its broader strategy. After meeting CM Majhi, Agarwal said India should make greater use of its domestic mineral resources rather than remain dependent on imports.

Odisha targets larger aluminium ecosystem

The state government has linked the proposed investments to employment generation and industrial development. CM Majhi said efforts to implement the projects would be intensified, with the proposed investments expected to generate more than 2 lakh (200 thousand) direct and indirect jobs.

The projects are also intended to strengthen Odisha’s position across the aluminium value chain, from bauxite and alumina to aluminium smelting and downstream manufacturing.

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