Aditya Birla Group proposes expanding alumina plant in Odisha by ₹12,000 crore

July 11, 14:45

This proposal was made during a meeting between Chief Minister Mohan Charan Majhi and Aditya Birla Group Chairman Kumar Mangalam Birla on Saturday. The expansion will allow the plant's production capacity to increase from the initially planned one million tonnes per annum (mtpa) to three mtpa, bringing the total project cost to ₹20,000 crore.

The plant in Kansariguda is being developed by Hindalco Industries Ltd, which is the flagship metallurgical enterprise of Aditya Birla Group. It was originally approved as a new 1 mtpa alumina plant with an estimated cost of around ₹8,000 crore. With support from the state and the long-term potential of the project, the company offered an additional ₹12,000 crore to add 2 mtpa of production capacity.

Economic Impact and Support

This project will provide a significant amount of direct and indirect employment, as well as create new opportunities for local businesses, service providers, and related industries. The expansion is also expected to stimulate the development of downstream aluminum production in Odisha, helping the state capture a larger share of added value in the aluminum supply chain.

The Chief Minister welcomed the offer, emphasizing that Odisha's rich mineral resources should be transformed into industrial added value, advanced manufacturing, and quality employment within the state, rather than being limited to raw material extraction. Majhi stated that aluminum is central to the state's vision of adding metallic value, and that the expansion of the Kansariguda plant will strengthen Odisha's position as a leading center for metallurgy and metalworking in India.

Assistance and Future Plans

The Chief Minister assured Birla that the state government would provide all necessary support for the timely implementation of the project, including land, infrastructure, utilities, permits, and other requirements. During the meeting, progress on current and proposed investments by Aditya Birla Group in Odisha, as well as opportunities to deepen the conglomerate's presence in various sectors, were discussed. In addition to the alumina plant, potential investments were considered in copper production, laminated copper products, printed circuit boards, advanced aluminum products, technical textiles, paints, jewelry manufacturing, renewable energy, chemicals, cement, and apparel.

According to industry experts, increasing production capacity will reduce dependence on imported alumina for certain operations while supporting the company's long-term domestic and export goals. The state is actively attracting investments in high value-added sectors such as metals, electronics, renewable energy, petrochemicals, and advanced manufacturing.

Group's Overall Presence in Odisha

Despite the new proposal, it only reinforces the group's long-standing industrial presence in Odisha. Hindalco already has a significant industrial footprint in the state, having invested over ₹40,000 crore in bauxite mining, alumina production, primary aluminum smelting, and downstream processing. In addition to the ₹12,000 crore expansion of the Kansariguda plant, the Aditya Birla Group's flagship metallurgical enterprise plans to invest another ₹38,000 crore in the state.

Hindalco's key production assets are located in Odisha, including the Aditya Aluminium complex in Lapanga, Sambalpur, which is undergoing an expansion worth ₹21,000 crore to double smelting capacity to 0.72 mtpa. The company also operates the Utkal alumina plant in Rayagada with a capacity of 2.12 mtpa, supplied with bauxite from the Baphlimali mines via an 18-kilometer conveyor, as well as the Hirakud smelter, one of India's oldest aluminum facilities. The conglomerate is also actively expanding its presence in apparel and textiles, focusing on women's employment, and opening new production units in Rayagada, Keonjhar, and Sambalpur.

business-standard.comJuly 10, 06:57

ONGC approves expansion of strategic oil reserves following Iran war crisis

The ONGC council approved an increase in national crude oil reserves by 1.75 million tons in Mangalore, Karnataka state. This decision was made against the backdrop of concerns arising after the war with Iran, which highlighted risks in the energy sector.

Expansion of storage facilities and project goals

According to an official document, India's largest oil and gas producer consented to add this capacity. Upon completion of the project, it will increase the volumes managed by the Indian Strategic Petroleum Reserves Ltd., which is responsible for storage reserves. Currently, Indian Strategic has underground storage facilities at three sites on the east and west coasts, with a total capacity of 5.33 million tons. Furthermore, two new sites are under construction to increase space by another 6.5 million tons.

Energy crisis and the role of ONGC

India is a major importer of crude oil and natural gas from the Persian Gulf region. The near-complete closure of the Strait of Hormuz during the war with Iran triggered an energy crisis, forcing importers to seek alternative supply sources. ONGC became the first state-owned company to decide to independently invest funds in creating strategic reserves, whereas previously state-owned refineries and producers were only involved in commercial storage.

Government support and partnerships

ONGC stated in its document, published on Friday, that the new project is of 'national importance' and will be accompanied by the development of related infrastructure in accordance with the directives of the Ministry of Petroleum and Natural Gas. The government aims to ensure sufficient reserves of crude oil, liquefied natural gas, and petroleum gas to cover the country's needs for up to one month. To achieve this goal, the authorities supported public-private partnerships to reduce the financial burden on the state, and called upon state producers and refiners to expand commercial reserves and assist in creating strategic reserves.

Operations and leasing

ONGC's subsidiary, Mangalore Refinery and Petrochemicals Ltd., operates a refinery with a capacity of 300,000 barrels per day in Karnataka state, and there is a possibility that ONGC can utilize the new underground storage facilities jointly with MRPL. Among the companies that have leased space in existing storage facilities in Mangalore is Abu Dhabi National Oil Co., the largest oil company in the United Arab Emirates.

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