India’s Adani Group and Abu Dhabi’s International Holding Company (IHC) have agreed to invest $11.5 billion in a large-scale aluminium project in Odisha, eastern India, the companies announced on Thursday. The pact, formalized through a memorandum of understanding with the Odisha state government, is expected to mark India’s largest foreign direct investment in the metallurgy sector.

The proposed project involves the establishment of an integrated aluminium complex featuring a refinery with an annual production capacity of 4 million metric tonnes, a smaller aluminium smelter, and a captive power plant with a capacity of 4,000 megawatts. The joint venture will be evenly split between Adani Enterprises Limited and an IHC subsidiary.

Officials expect the development will generate approximately 53,500 direct and indirect jobs, contributing significantly to regional economic growth. Syed Basar Shueb, chief executive of IHC, highlighted the collaboration as a step toward building a world-class aluminium facility that will deliver lasting economic value.

India is currently the world’s second-largest aluminium producer but continues to rely on imports to meet growing domestic demand from various industries. In response, Indian policymakers have recently introduced a strategic initiative aimed at substantially increasing aluminium output, with plans to raise production sixfold and double the national recycling rate by 2047.

The project aligns with these broader national objectives to enhance self-sufficiency in aluminium production while supporting sustainable industrial growth. The partnership between Adani and IHC underscores a growing trend of international investment in India’s infrastructure and resource sectors.