Vedanta to Invest Rs. 1 Lakh Cr. in Odisha Aluminium Project
Vedanta Ltd., a major Indian Aluminium producer, will be investing about Rs. 1 lakh crore to develop an Alumina refinery and a smelter to produce Green Aluminium* in Raygada, Odisha.
The company signed a Memorandum of Understanding (MoU) with Odisha government during the Utkarsh Odisha 2025 conclave, which was held on 28th and 29th January 2025.
*Green Aluminium refers to Aluminium having a low-carbon footprint. Such Aluminium is produced with minimal effect on the environment.
6 MMTPA Alumina Refinery, 3 MMTPA Aluminium Plant Planned
Vedanta’s investment in Odisha will entail establishment of a 6 Million Metric Tonne Per Annum (MMTPA) Alumina refinery, and a 3 MMTPA smelter to produce Green Aluminium. Vedanta’s upcoming facility will be using Renewable Energy (RE) for Aluminium production.
Phase-1 of Vedanta’s aforementioned Aluminium project in Raygada is expected to be commissioned in the next 3 years. However, details of Phase-1’s capacity or investment were not mentioned by the company.
It must be noted that Vedanta already manufactures low-carbon footprint Aluminium under the brands ‘Restora’ and ‘Restora Ultra’.
At the Utkarsh Odisha Conclave, Mr. Anil Agarwal, Founder & Chairman of Vedanta Group, said that the company’s investment in Raygada will help create an ecosystem of downstream Aluminium-based industries, including MSMEs, in the region.
Bauxite to be Sourced from Sijimali Mines
Bauxite (an Aluminium ore) for Vedanta’s upcoming Alumina refinery and Aluminium smelter in Raygada will be sourced from Sijimali mines in Odisha. The company had secured mining rights from Odisha government for Sijimali Bauxite block in 2023. Vedanta’s Sijimali block sprawls over 1,549.022 hectares, and has 311 Million Tonne of estimated Bauxite reserves.
Project to Create 2 Lakh Employment Opportunities
As per Vedanta, its upcoming Alumina refinery and Aluminium plant in Raygada will create about a total of 2 lakh employment opportunities in the state.
It must be noted that Raygada has about 57.52% of tribal population, and over 30% of the population in Raygada is below poverty line. Therefore, Vedanta’s investment in the region is expected to benefit the locals by contributing to socio-economic development.
At the Utkarsh Odisha Conclave, Mr. Anil Agarwal added, “We are excited to continue our long-standing collaboration with the Government of Odisha, focusing on sustainable development, skill-building, and improving the quality of life for millions of people”.
Significance of Vedanta’s Investment for India’s Aluminium Market
Vedanta is the largest Aluminium producer in India, and in FY-24 the company churned out 2.36 Million Metric Tonne (MMT) out of India’s total Aluminium production of 4.19 MMT. Therefore, Vedanta occupies a central position in India’s Aluminium market.
Having said this, Vedanta’s Aluminium expansion assumes importance considering the projected growth of India’s Aluminium market. As per Next Move Strategy Consulting, an Indian market research firm, India’s Aluminium market was valued at about USD 11.28 billion in 2023, and it is expected to grow to USD 18.84 billion by 2030. The report mentions India’s Aluminium market to grow at a CAGR of 7.6% from 2024 to 2030.
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. For FY-24, the company reported a consolidated revenue of Rs. 1,41,793 crore.
