Vedanta to Make Additional Rs. 1 Lakh Cr. Investment in Odisha
Vedanta Group has announced an investment of Rs. 1 lakh crore in Odisha. This investment will go towards setting up an Alumina refinery and an Aluminium smelter near Kamakhyanagar in the Dhenkenal district of the state.
It must be noted that this fresh investment will be made in addition to the earlier announced Rs. 1 lakh crore investment by Vedanta to develop an Alumina refinery and smelter in Raygada district of Odisha.
Alumina Refinery & Al Smelter Planned in Dhenkenal
Vedanta Group’s new investment will be for the establishment of a 6 Million Metric Tonnes Per Annum (MMTPA) Alumina refinery and a 3 Million Tonnes (MT) Aluminium smelter plant in the Dhenkanal district of Odisha. Media reports from September 2025 cited Mr. Rajiv Kumar, CEO of Vedanta’s Aluminium Business saying, “…We are actively involved in land acquisition [for the Dhenkenal smelter] , and hopefully things are progressing very well”.
Odisha government will be offering about 1,400 acres of land in Dhenkenal for this project. Once the required land is allotted, construction work is expected to commence within three to four months. As per Vedanta, the Dhenkenal complex will pave way for numerous downstream Aluminium industries pertaining to sectors such as auto, railway, power, construction, and more.
Overall, this project is expected generate more than two lakh employment opportunities in the region. This assumes special importance socially, since over 30% of the population in Odisha’s Dhenkenal district lives below the poverty line (as per NITI Aayog).
Vedanta’s Dhenkenal Complex to Source Bauxite from Sijimali Mines
Vedanta Aluminium’s upcoming complex at Dhenkenal, Odisha will source its bauxite from Sijimali mines. The company had secured mining rights for this bauxite block in 2023. Sijimali mining block spreads across an area of about 1,549.022 ha., with 311 million tonne of estimated bauxite reserves.
It must be noted that these mines will also provide bauxite to the company’s planned Aluminium complex in Raygada.
Green Aluminium to be produced at Dhenkenal & Raygada Complexes
Vedanta’s upcoming Alumina refineries and Aluminium smelters in Dhenkenal and Raygada districts of Odisha will produce green Aluminium. Green Aluminium refers to Aluminium produced with practices which lower its overall carbon footprint. As per Vedanta, the company will use Renewable Energy for the production of Aluminium at Dhenkenal and Raygada. Notably, Vedanta had launched its brand of low-carbon emission Aluminium, ‘Restora’ in 2022.
Two Aluminium Parks Planned Additionally
Apart from the Alumina refinery, the company also plans to develop two Aluminium Parks in Odisha. Notably, these parks are not a part of the aforementioned Rs. 1 lakh crore investment. One of these parks will be located in Jharsuguda, while the location for the second park is yet to be finalized by the state government. These parks will focus on producing high-grade aluminium alloys designed for use in aerospace, electric vehicle, and defence sectors.
Growing Aluminium Demand in India
The aforementioned Aluminium projects are expected to cater to the rising domestic demand for the metal in India. According to a March 2025 report by Bizongo, the Indian Aluminium Market was valued at USD 13.77 billion in 2024 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.27% through 2030.
The report further highlighted that India is the second-largest Aluminium producer globally, accounting for nearly 6% of the world’s total Aluminium production.
About Vedanta Ltd.: Vedanta Ltd. is a major Indian minerals and mining company which deals in ferrous and non-ferrous metals and oil and gas. The company has assets located in India, Namibia, South Africa and Liberia.
