International Holding Company (IHC), based in Abu Dhabi, has proposed to invest $11.5bn (Dh42.23bn) in an integrated aluminium project in the Indian state of Odisha in partnership with Adani Group.
The planned investment will be made through a joint venture (JV), with both IHC and Adani Group holding equal stakes, as per the memorandum of understanding.
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It is set to become the largest foreign investment in India’s metals sector to date.
The JV will establish a facility comprising a refinery, smelter, captive power plant and aluminium manufacturing park.
This project is expected to create Odisha’s largest aluminium complex, with a planned production capacity of four million tonnes per annum (mtpa) of alumina, 2mtpa of aluminium and 1mtpa of downstream aluminium products.
The development aims to support India’s efforts to increase domestic aluminium production across sectors such as infrastructure, power, transport and renewable energy.
National forecasts outlined by the federal government last year indicate domestic aluminium demand may reach 8.5 million tonnes by fiscal year 2030 as the country seeks to reduce dependence on imported value-added metal products, Reuters reported.
Odisha contains some of India’s major reserves of bauxite, the key raw material for aluminium, and accounts for 54% of the nation’s aluminium output.
The project is set to create 53,500 jobs, with 35,000 during the construction phase and 18,500 once the complex becomes operational.
Adani Group, led by Gautam Adani, presently has no aluminium manufacturing facilities but previously announced plans for aluminium projects in Odisha.
The group’s flagship company, Adani Enterprises, currently operates a $1.2bn (Rs114.34bn) copper smelter in Gujarat.
