Adani-IRH Secures Land for $11.5bn Odisha Aluminium Complex
Odisha government transfers 7,000 acres to Adani and IRH for an integrated aluminium facility, accelerating the execution phase of a major industrial investment.
The Odisha government has transferred over 7,000 acres of land to the Adani Group and International Resources Holding (IRH) joint venture, clearing a critical path for the proposed USD 11.5 billion integrated aluminium complex. This asset covers the planned alumina refining, smelting, and downstream manufacturing infrastructure located across the Sundargarh and Rayagada districts.
The land allocation consists of approximately 4,000 acres in Sundargarh and 3,000 acres in Rayagada. Chief Minister Mohan Charan Majhi handed over the documents in the presence of India’s Ambassador to the UAE, Deepak Mittal. This move finalizes the physical footprint for a project that integrates the entire aluminium value chain under a 50:50 partnership between the Adani Group and the Abu Dhabi-based IRH entity.
Phase One Investment Breakdown
The complex will be developed in two distinct phases with a total capital commitment of INR 1.08 trillion. The first phase requires an investment of approximately INR 660 billion (USD 7 billion), while the second phase will involve a further INR 420 billion (USD 4 billion). This staged approach aligns capital expenditure with the sequential commissioning of the refinery and smelter facilities.
The operational capacity planned for the site includes a 4 million tonne per annum (mtpa) alumina refinery and a 2 mtpa aluminium smelter. Additionally, the project scope includes a 1 mtpa downstream manufacturing park designed to handle value-added fabrication and ancillary production. These figures represent the core production capabilities that will define the company's output in the region.
Captive Power and Supply Chain
Energy security is addressed through a 4,000 MW captive power plant, of which 400 MW is designated for green power generation. The alumina refinery is situated in Rayagada to leverage proximity to local bauxite sources, ensuring a direct feedstock supply. In contrast, the smelter and power facilities are located in Sundargarh, optimizing the logistical flow from raw ore to molten metal.
This integrated structure is designed to minimize external dependencies on raw materials and energy costs. By co-locating the refinery near bauxite deposits and the smelter near the power source, the joint venture reduces transport costs and supply chain volatility. The downstream park further extends the business model into finished goods, capturing additional margin within the same operational footprint.
Broader Odisha Industrial Strategy
The land handover occurred less than 70 days after the Adani Group and IHC signed a broader investment pact with the state. These agreements cover 14 proposed projects with combined investments of approximately INR 2 trillion (USD 20 billion). The Odisha government projects that these initiatives will generate nearly 190,000 direct and on-site employment opportunities, anchoring the state's industrial growth strategy.
The rapid transfer of land signals a deliberate effort by the state administration to shorten the timeline between contractual agreements and project execution. For the Adani-IRH venture, this administrative efficiency reduces regulatory risk and allows the company to proceed with detailed engineering and construction mobilization. The project stands as a central pillar of the region's long-term aluminium value chain development.
