Vedanta Group has urged the Odisha government to accelerate its proposed ₹1 trillion investment in the state to expand its aluminium operations, including a 3 million tonne per annum (mtpa) smelter in Dhenkanal and a 6 mtpa alumina refinery in Rayagada, as the mining major plans to increase its aluminium production capacity to meet rising domestic demand.
Anil Agarwal, founder and chairman of Vedanta Group, discussed the proposed investments with Chief Minister Mohan Charan Majhi at Lok Seva Bhawan in Bhubaneswar on Saturday. The meeting focused on expediting project implementation and strengthening coordination between the company and the state government.
The company also proposed a 1 mtpa brownfield expansion of its existing aluminium smelter at Jharsuguda, which would further increase its production capacity in the state.
The proposed Dhenkanal smelter is expected to supply hot metal to Vedanta’s downstream aluminium parks in Odisha, potentially supporting greater value addition and the development of aluminium-based manufacturing in the state.
Once the proposed projects are completed, Vedanta’s cumulative aluminium production capacity will reach around 6 mtpa. The company currently operates a large aluminium smelting complex in Jharsuguda and an alumina refinery at Lanjigarh in Kalahandi.
According to a statement issued by the Chief Minister’s Office (CMO), the upcoming projects are expected to generate more than 200,000 direct and indirect employment opportunities. The investment could have a wider multiplier effect across logistics, infrastructure, engineering, ancillary industries and supplier networks, potentially supporting more than 20 lakh livelihood opportunities.
The company also announced plans to establish a 1,000-bed hospital in western Odisha, adding a healthcare component to its proposed expansion in the state.
During the discussion, Agarwal said the proposed investments were aimed at building a globally competitive industrial ecosystem around aluminium and supporting India’s requirements in infrastructure, energy transition, advanced manufacturing and emerging technologies. He also reaffirmed Vedanta’s commitment to Odisha, where the company has had a presence for more than two decades, the CMO stated.
Following the meeting with Agarwal and his team, Majhi said the state government would step up efforts to facilitate the early implementation of the projects. “The government is keen to create large-scale employment opportunities for Odisha’s youth and would extend all possible support to investments with significant potential for job creation and local economic development,” he said.
The proposed expansion comes at a time when aluminium demand is expected to increase across several sectors, including renewable energy, power transmission, electric vehicles, aerospace and infrastructure.
The company also highlighted the growing use of aluminium in data-centre infrastructure, including power transmission and distribution systems, cooling equipment and heat exchangers, as another potential source of demand.
The proposed investments, along with its existing facilities, could strengthen Odisha’s position as a major aluminium manufacturing hub and support the development of a wider ecosystem of MSMEs, suppliers and downstream industries.
Vedanta’s existing operations at Jharsuguda and Lanjigarh already form a significant part of the state’s aluminium industry, while the proposed Dhenkanal and Rayagada projects would add substantial new capacity.
The state government has already allocated land for the alumina refinery in Rayagada and the power plant and aluminium smelter projects in Dhenkanal. Development of supporting infrastructure and other essential facilities for the projects is currently underway.
Earlier in May, the Odisha government decided to monitor the progress and implementation of Vedanta Group’s proposed industrial projects every 15 days to ensure an early start to work and timely execution.
