Bhubaneswar: Vedanta Group chairman Anil Agarwal recently met with Odisha Chief Minister Mohan Majhi, revealing ambitious plans for a substantial investment of approximately ₹1 lakh crore in the state over the coming years.
A key highlight of these plans is the establishment of a state-of-the-art ferro-alloy plant in Keonjhar district, valued at ₹2,000 crore. Additionally, Vedanta intends to set up two new aluminum parks. One will be located near the company’s existing facility in Jharsuguda, while the site for the second park is yet to be determined by the state government. These parks are expected to produce high-grade aluminum alloys catering to crucial sectors such as aerospace, electric vehicles, and defense.
Currently, Vedanta operates a significant aluminum smelter with a capacity of 1.8 million tonnes per annum (MTPA) in Jharsuguda, supported by a 4,900 megawatt (MW) captive power plant. The company also runs a 3.5 MTPA alumina refinery in Lanjigarh and possesses chrome and iron ore mines across Jajpur, Dhenkanal, and Sundargarh districts. Further expansion includes a greenfield aluminum smelter with a 3 MTPA capacity near Kamakhyanagar in Dhenkanal and a 6 MTPA alumina refinery with a 1.2 MTPA smelter in Rayagada district.
The Odisha government has pledged its full support for Vedanta’s expansion initiatives, promising assistance with land acquisition and infrastructure development. Chief Minister Majhi expressed optimism, stating, “This investment will not only accelerate economic growth but also open vast opportunities for our youth and help Odisha achieve a $500 billion economy by 2036.”
These new projects will bring Vedanta’s total investment commitment in Odisha to over ₹1 lakh crore. However, this significant investment push by Agarwal occurs amidst growing concerns about the company’s access to raw materials, particularly from the Sijimali bauxite mine located in the Kalahandi and Rayagada districts.
The Odisha government had granted a 50-year mining lease for the Sijimali bauxite project in March 2023. Vedanta’s interest in Sijimali grew after encountering challenges with its Niyamgiri hills mining plans. The Sijimali mines are estimated to contain 311 million tonnes of bauxite reserves. Activists have noted that the project could potentially displace around 100 families from 18 villages across the two districts.
Securing bauxite from Sijimali is vital for Vedanta’s Lanjigarh refinery, which currently relies on imported ore and faces long-term sustainability questions. The company aims to extract approximately 9 million tonnes of bauxite annually from Sijimali to supply the refinery. However, the project has met with opposition from local communities concerned about forest diversion and their rights.
Earlier this year, the Union Ministry of Environment, Forest, and Climate Change postponed a decision on Vedanta’s proposal to divert 708.2 hectares of forest land for mining. This deferral followed concerns raised by its forest advisory committee regarding the inadequate consideration of local objections pending before the Orissa High Court.