India, UAE groups ink pact for $11.5 bn Indian aluminium project

India's Adani Group and Abu Dhabi's International Holding Company are looking to invest $11.5 billion in a massive aluminium project in the eastern state of Odisha, the Indian conglomerate said on Thursday. The deal was signed with the Odisha state government.

What is the $11.5 billion Adani-IHC aluminium project?

Adani Enterprises Limited and an IHC subsidiary will form a 50/50 joint venture to build an integrated aluminium project in Odisha. The plant will include a refinery capable of producing four million metric tons of aluminium annually, a smaller aluminium smelter, and a 4,000-megawatt captive power plant.

Why is the Odisha aluminium project significant?

Adani said the proposed investment will be India's largest foreign direct investment in the metallurgy sector. The project is expected to create 53,500 jobs once operational. Syed Basar Shueb, chief executive of IHC, said the partnership reflects the company's ambition to build a world-class integrated aluminium project that creates lasting economic value.

Why does India need more aluminium production?

India remains the world's second-largest aluminium producer but still relies on imports to meet rising demand from local industries. Indian policymakers unveiled a strategic plan last year to scale up domestic aluminium production six-fold by 2047. The plan also calls for doubling the national aluminium recycling rate.