Adani's proposed $11.5b aluminium project in Odisha to adopt hybrid power model

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Adani Group and Abu Dhabi-based International Holding Company (IHC) are moving ahead with plans to build one of India's largest integrated aluminium manufacturing complexes in Odisha. The project will be powered by a combination of a 4,000 Adani's proposed USD 11.5 billion aluminium project in Odisha to adopt hybrid power model MW captive power plant and a 400 MW renewable energy unit.

The project returned to focus after Adani Group Chairman Gautam Adani, accompanied by Karan Adani, visited Rayagada to review land availability, transport connectivity and infrastructure for the proposed facility.

Hybrid energy model to support aluminium production

The project will be developed through a 50:50 joint venture between Adani Enterprises and IHC's subsidiary, International Resources Holding (IRH). Plans include a 4 million tonnes per annum (MTPA) alumina refinery, a 2 MTPA aluminium smelter and a 1 MTPA downstream aluminium manufacturing park.

The proposed power mix is intended to provide a reliable electricity supply for the energy-intensive operations while increasing the use of renewable energy. The overall investment is estimated at around USD 11.5 billion (INR 1.08 lakh crore).

The investment marks Adani Group's second major metals venture after its greenfield copper smelter project in Gujarat and aligns with India's efforts to expand domestic aluminium production to meet rising demand from infrastructure, transport, renewable energy and manufacturing.

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Rayagada visit signals progress on project preparations

During the Rayagada visit, senior technical officials from the Adani Group assessed site readiness, transport infrastructure and land availability for the proposed development.

Rayagada, which has abundant bauxite reserves, is also being considered for a proposed INR 41,650 crore alumina refinery and power plant, which would form a key part of the wider integrated aluminium project. The group is also evaluating investments in thermal power generation and digital infrastructure within the state.

Project to strengthen Odisha's aluminium value chain

Odisha currently accounts for around 54 per cent of India's aluminium production, supported by its abundant bauxite reserves, making it a strategic location for expanding the country's integrated aluminium value chain.

 The joint venture has signed long-term raw material supply agreements with the Odisha Mining Corporation (OMC), while project logistics are expected to be supported through Adani Ports' Dhamra Port.

India produced approximately 4.2 million tonnes of aluminium during FY2024-25 against domestic demand of around 5.5 million tonnes. The country aims to increase aluminium production capacity to 37 MTPA by FY2047, while securing a 10 per cent share of the global aluminium market.

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Commissioning targeted within five years

The aluminium complex will be developed in two phases, with Phase 1 involving an investment of INR 660 billion (USD 6.9 billion) and Phase 2 requiring INR 440 billion (USD 4.6 billion).

Speaking earlier at the memorandum of understanding signing ceremony, Karan Adani, Managing Director of Adani Ports and Special Economic Zone, said the partners expect to secure all regulatory approvals within 12 to 18 months, with the first phase targeted to begin operations aboutGreen energy to power Adani's proposed USD 11 three to three-and-a-half years later.

He added that the entire project is expected to be commissioned within four to five years.

Once completed, the development is projected to generate around 35,000 jobs during construction and 18,500 permanent positions across mining, alumina refining, aluminium production and downstream manufacturing, alongside additional employment opportunities throughout the supporting supply chain.

The Odisha government has backed the investment, describing it as an opportunity to develop a complete aluminium value chain spanning mining, refining, smelting and downstream manufacturing while strengthening the state's position as India's leading aluminium-producing region.

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