Vedanta’s 1 lakh crore dream project of alumina refinery and aluminium smelter coming up in phases

Mining conglomerate Vedanta's dream project of 6 million tonnes per annum of alumina refinery and 30 lakh tonnes of aluminium smelter is coming to life, for which the budget is INR 1 lakh crore (US$11.55 billion). As per the report, the project's first phase is expected to be commissioned in the next three years, with further expansion plans in the pipeline.

Image source: Vedanta Limited

The news came after Vedanta's chairman, Anil Agarwal, announced the project plan at the Make in Odisha Conclave 2025, adding that it would strategically come up in the Rayagada district of Odisha to take advantage of the nearby bauxite from Vedanta's Sijimali bauxite mine, which is currently under development for exploration.

In October 2024, Vedanta talked about this project for the first time during the meeting with Chief Minister Mohan Charan Majhi, but without revealing the location.

So far, Vedanta group has invested more than INR 1 lakh crore in Odisha, bringing its smelter capacity to 1.8 million tonnes per year and refinery to 3.5 million tonnes per annum in Lanjigarh. Vedanta has also established mines in the Jaipur and Dhenkanal districts of Odisha for chrome ore mining.

All the investments by Anil Agarwal in Odisha complement the state's commitment to becoming the industrial powerhouse of Eastern India, driving India's growth towards "Viksit Bharat" by 2027.

At Odisha Conclave 2025 in Bhubaneswar, Odisha's Chief Minister, Mr Mohan Charan Majhi, said: "Odisha is committed to becoming the industrial powerhouse of Eastern India, driving our nation's growth towards "Viksit Bharat" by 2047. With seamless investor support and world-class infrastructure, we will forge a new path of prosperity and inclusivity, making Odisha the preferred destination for both domestic and global investments."

At the conclave, Mr Sampad Chandra Swain, Industries Minister of Odisha, conveyed, "Our vision for Odisha's industrial growth is aligned with the national vision of a developed India. Together with the Central Government, we are building a future where Odisha stands as a gateway for trade, innovation, and industrial excellence, offering a seamless experience to every investor and entrepreneur who chooses to be part of this journey."

Under the leadership of Anil Agarwal, Vedanta Aluminium contributes nearly 3 per cent to Odisha's Gross State Domestic Product (GSDP), driving over 1 lakh crore investments, the company's single most significant investment globally.