Vedanta Accelerates Land Acquisition for Major Aluminium Smelter in Odisha

Vedanta Limited is actively acquiring land in Dhenkanal, Odisha, for a ambitious 3 million tonnes per annum (MTPA) aluminium smelter project that will significantly expand the company’s manufacturing footprint in eastern India.

Doubling Production Capacity
Rajiv Kumar, Chief Executive Officer of Vedanta’s Aluminium business, announced the strategic expansion during ALUMEX India 2025 in New Delhi. The new facility represents a crucial milestone in the company’s growth trajectory, aiming to double its current aluminium production capacity from 3 million tonnes to 6 million tonnes annually.

“We are moving towards setting up a new mega aluminium plant at Dhenkanal, Odisha, with a capacity of three million tonnes,” Kumar explained to industry reporters. The executive emphasized that land acquisition processes are progressing smoothly, indicating strong coordination with local authorities and stakeholders.

Employment Generation and Green Manufacturing
The proposed green aluminium smelter promises substantial economic benefits for the region, with potential to create over two lakh direct and indirect employment opportunities. This job creation aligns with government initiatives to boost industrial development in Odisha while supporting sustainable manufacturing practices.

Kumar highlighted the capital-intensive nature of aluminium production, noting that such large-scale facilities typically require three to four years for complete establishment. The extended timeline reflects the complex infrastructure requirements and regulatory approvals necessary for modern smelter operations.

Strategic Infrastructure Development
Beyond the primary smelter project, Vedanta is simultaneously expanding its billet manufacturing capacity from the current 580 kilotonnes, with plans to double this output. Billets serve as essential raw materials for the aluminum extrusion industry, supporting downstream manufacturing sectors.

The company is also developing an aluminium park in Jharsuguda, Odisha, inviting downstream manufacturers to establish operations within this integrated industrial ecosystem. This cluster approach promotes supply chain efficiency and reduces logistics costs for participating companies.

Industry Context
These announcements came during ALUMEX India 2025, the country’s inaugural dedicated aluminium extrusion exhibition, which attracted over 200 exhibitors and approximately 25,000 business visitors from across the aluminium value chain. The event highlighted growing demand for aluminium products in construction, automotive, and infrastructure sectors.

Vedanta’s expansion reflects broader confidence in India’s aluminium market, driven by infrastructure development projects and increasing industrial applications requiring lightweight, durable materials.