July 2 (Reuters) – Abu Dhabi’s International Holding Company (IHC.AD), plans to invest $11.5 billion in an integrated aluminium project in India’s eastern state of Odisha through a joint venture with Adani Group, a state official said on Thursday, marking the country’s largest foreign investment in the metals sector.
Under the Memorandum of Understanding (MoU), IHC and India’s Adani Group will each hold a 50% stake in the venture, which will comprise a refinery, smelter, captive power plant and downstream aluminium manufacturing park.
The investment comes as India seeks to expand domestic aluminium production to meet growing demand from the infrastructure, power, transport and renewable energy industries, while reducing reliance on imports of value-added metal products.
Odisha, home to some of India’s largest bauxite reserves, accounts for 54% of the country’s aluminium output.
The project is expected to create 53,500 jobs, with 35,000 during construction and another 18,500 once operations begin, the state official said at the MoU signing ceremony.
The project will house Odisha’s largest aluminium complex, comprising a 4 million metric tons per year (MTPA) alumina capacity, a 2-MTPA aluminium capacity and downstream aluminium facilities, with a capacity of 1 MTPA.
Reporting by Kashish Tandon in Bengaluru; Editing by Rashmi Aich.
