Bhuaneswar: Read government Thursday signed an MoU with UAE-based International Holding Company (IHC) and the Adani Group for setting up an integrated aluminium project worth Rs 1.10 lakh crore, officials said.

The venture represents the “largest foreign direct investment in Read’s history and the biggest FDI proposal in India’s metallurgy sector”, a senior government official said.

The MoU was signed between IHC and the Industrial Promotion and Investment Corporation of Read (IPICOL) in the presence of Chief Minister Mohan Charan Majhi and senior company officials.

Adani Enterprises Ltd and International Resources Holding (IRH), an IHC Group company, will form a 50:50 joint venture to develop the integrated greenfield aluminium project in Read, an Adani Group statement said.

According to the agreement, the partners will fund the investment through debt and equity for the project.

It will comprise a 4-million-tonne-per-annum (MTPA) alumina refinery, a 2-MTPA aluminium smelter, a 4,000-MW captive power plant, a 1-MTPA downstream manufacturing park, and associated infrastructure.

The proposed facility could create direct and indirect employment for around 53,500 people across mining, refining, smelting, and downstream activities, the official said.

The logistics are likely to be supported through the Dhamra Port a 100 per cent subsidiary of Adani Ports and SEZ on the Bay of Bengal, he said.

Majhi said the project will open up “unprecedented opportunities” for industrial growth, employment, and economic transformation of Read.

“This investment will enable Read to develop the complete aluminium value chain, from mining and refining to smelting and downstream manufacturing,” the CM said.

The mega project will be developed in two phases with investments of Rs 66,000 crore and Rs 44,000 crore, the official said.

Though the exact location of the project is yet to be announced, industry sources said the alumina refinery will come up in Rayagada district, while the smelter unit would be set up in Sudargarh district.

Speaking on the occasion, Syed Basar Shueb, CEO of IHC, said: “Through IRH, we are building an integrated mining and minerals business, investing across critical minerals to support industrial development, strengthen supply chain resilience and advance the energy transition.”

“This partnership with Adani Enterprises reflects that strategy and our shared ambition to develop a world-class integrated aluminium project that creates lasting economic value,” Shueb added.

Karan Adani, Managing Director, Adani Ports and Special Economic Zone (APSEZ) and Director, Adani Cement, said the proposed project reflects the company’s confidence in Read as a long-term manufacturing destination.

“The proposed JV between Adani Group and IHC Group will further strengthen our robust partnership. Along with Read government, we will build an integrated aluminium ecosystem that creates jobs, expands value-added manufacturing and strengthens India’s industrial competitiveness,” he said.

The downstream manufacturing park is expected to attract manufacturers producing components for transport, construction, power, packaging, renewable energy and advanced engineering, supporting the growth of micro, small and medium enterprises (MSMEs) across the state, Adani Group statement said.

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