Hindalco Industries plans to invest up to 1 trillion rupees in India

The Minister of Information Technology, Ashwini Vaishnaw, announced that the Cabinet has approved the allocation of funds amounting to 1.27 lakh rupees for the second phase of India's Semiconductor Mission (ISM).

Goals of Semicon 2.0 Program

The government expects the Semicon 2.0 program to attract investments of about 4 lakh rupees and ensure semiconductor production worth 2 lakh rupees during the scheme's duration. The official statement specified that the Cabinet, chaired by Prime Minister Narendra Modi, approved the updated program aimed at strengthening the ecosystem for semiconductor design and manufacturing in India.

Expansion of Supply Chain Support

Unlike the first phase, Semicon 2.0 also extends incentives to suppliers of critical raw materials for chip production, including minerals and industrial gases. This is being done to create a more complete domestic semiconductor supply chain. The minister emphasized that ISM 2.0 was approved with a total budget of 1.27 lakh rupees.

Priorities and Self-Reliance

According to Vaishnaw, Semicon 2.0 will cover the entire semiconductor creation cycle and will be built on six main areas, with chip design being the first area of focus. He added that the program will prioritize the development, creation, and production of indigenous semiconductor chips to strengthen India's internal capabilities. The minister stated that by the end of this program's implementation, the country will achieve self-sufficiency in domestic chip production.

Results of the First Phase and Global Context

Previously, the government had allocated 76,000 crore rupees for the first phase of the India Semiconductor Mission (ISM). Under ISM 1.0, 12 projects were approved with cumulative investments of approximately 1.64 lakh rupees, with Tata Electronics and its semiconductor division contributing a significant portion of these commitments.

The launch of Semicon 2.0 comes amid a global race among countries to expand semiconductor manufacturing capacity, driven by constant supply constraints and growing demand for advanced chips, especially those used in artificial intelligence applications. The government anticipates that the new scheme will attract investments into additional semiconductor segments and help meet the rising demand for AI-focused chips.

Aditya Birla Group has announced plans to increase its investment in the state of Odisha, offering an additional ₹12,000 crore to expand its new alumina plant in Kansariguda, Rayagada district.

Project Expansion Details

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.