Vedanta Aluminium, known to be India's largest aluminium producer, is set to undertake the largest manufacturing capital expenditure of Q1 FY26 with a greenfield aluminium smelter project valued at INR 1.3 trillion (USD 15.64 billion) in Odisha. The investment reflects growing private sector confidence and underpins Vedanta's plans for a 3 MTPA smelter integrated with a 4,900 MW power plant set up near Kamakhyanagarin, Odisha's Dhenkanal district.
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Once operational, the project is expected to generate over 200,000 jobs and drive sustained economic growth in the region through the development of auxiliary industries, infrastructure improvements and enhanced logistics. In Q1 FY26, private sector investments totalled INR 3.5 trillion (USD 42.11 billion), with manufacturing emerging as the primary growth driver, accounting for more than half of the newly announced projects.
Vedanta's landmark investment aligns with India's long-term vision to establish itself as a global manufacturing hub, with Odisha positioned as the aluminium capital across the globe. Upon completion, the project is poised to rank among the largest aluminium smelters globally, underscoring the company's confidence in India's resource-rich ecosystem and the country's growing competitiveness in the industrial metals sector.
The set-up of this new smelter ensures the creation of diverse opportunities for numerous MSMEs, further pushing the infrastructure development as well as strengthening local supply chains. Amidst global economic headwinds, India's manufacturing sector is positioning itself as a key driver of long-term growth and industrial resilience.
Manufacturing-led capital expenditure plays a pivotal role in driving GDP growth and enhancing export capacity, while also enabling large-scale employment, strengthening regional ecosystems and catalysing critical infrastructure development. Such strategic, value-driven investments are instrumental in shaping India's trajectory as a global industrial and economic leader.
Rajiv Kumar, CEO, Vedanta Aluminium, stated, "The greenfield aluminium smelter in Odisha will not only reinforce India's position as a global aluminium powerhouse but also catalyse regional development through jobs, industrial innovation, and sustainable value chains. At a time when manufacturing-led investments are emerging as the backbone of India's economic resurgence, it is a proud moment for us to lead one of the largest industrial commitments of this decade. We are honoured to contribute meaningfully to Odisha's transformation and to India's journey towards becoming a global manufacturing and green metals hub."
The upcoming smelter in Dhenkanal is set to play a critical role in addressing rising domestic and global demand for high-quality aluminium, fuelled by growth in sectors such as electric mobility, renewable energy, infrastructure and defence.
In line with the company's sustainability roadmap toward achieving Net Zero Carbon by 2050 or earlier, the facility will incorporate advanced technologies to enhance energy efficiency and minimise emissions, reinforcing Vedanta's commitment to responsible and sustainable manufacturing.
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