Bhubaneswar, July 2, 2026: Odisha has scripted a new chapter in its industrial journey with the signing of one of the largest foreign investment agreements in the state's history. In a landmark move that reinforces the state's growing appeal among global investors, the Government of Odisha, through its investment promotion agency IPICOL, has signed a Memorandum of Understanding (MoU) with the UAE-based International Holding Company (IHC Group) for the development of a mega integrated aluminium project involving an investment of nearly USD 11.5 billion (approximately ₹1.10 lakh crore).
The agreement marks far more than a major investment announcement. It reflects Odisha's strategic transition from a mineral-rich state to a value-added manufacturing powerhouse and underscores the government's long-term vision of positioning the state as one of India's foremost industrial destinations by 2036, the centenary year of Odisha's formation.
The proposed integrated project will cover the complete aluminium value chain, including bauxite mining, alumina refining, aluminium smelting, captive power generation, downstream aluminium manufacturing and supporting industrial infrastructure. Once operational, the project is expected to become one of the largest integrated aluminium complexes in the country, significantly strengthening India's metal manufacturing ecosystem while enhancing Odisha's role in global industrial supply chains.
Employment generation forms the cornerstone of the investment. The project is expected to create nearly 35,000 jobs during the construction phase and an additional 18,500 direct and indirect employment opportunities after commissioning, taking the overall employment potential to more than 53,500. The investment is also expected to stimulate the growth of ancillary industries, logistics, infrastructure development, MSMEs and skill-based employment across multiple districts, creating a multiplier effect on the state's economy.
Addressing the gathering, Chief Minister Mohan Charan Majhi described the agreement as a defining milestone in Odisha's development journey. He said the state is steadily advancing towards the vision of "Prosperous Odisha 2036" while contributing to the national objective of "Viksit Bharat 2047". According to him, the partnership brings together Odisha's abundant mineral wealth, skilled human resources and progressive industrial policies with the financial strength, technology and global expertise of the UAE, laying the foundation for a long-term strategic partnership.
The Chief Minister emphasised that Odisha's industrial strategy is focused not merely on exporting raw minerals but also on creating value through downstream manufacturing, technological advancement and sustainable employment generation. He noted that the project perfectly aligns with the global transition towards green metals and environmentally responsible industrialisation, positioning Odisha to emerge as a leader in low-carbon metal production. He further assured investors that the state government would facilitate the project through coordinated and time-bound support, including land, water, power, logistics connectivity and all statutory approvals.
Beyond aluminium manufacturing, the collaboration is expected to expand into high-value sectors such as Research & Development (R&D), metallurgy, digital technologies and Global Capability Centres (GCCs), signalling a broader industrial partnership between Odisha and the UAE.
For IHC Group, the investment represents a strategic long-term commitment to India's growth story. Peter Abraham, Chief Strategic Officer of IHC Group, described the agreement as the beginning of a new chapter in India-UAE economic cooperation. He said the partnership extends well beyond commercial investment and is built on shared ambitions for sustainable development, technological collaboration and long-term value creation. According to him, Odisha offers an ideal combination of natural resources, policy stability and investment-friendly governance, making it a strategic destination for global capital.
Echoing similar sentiments, Karan Adani highlighted Odisha's immense competitive strengths. He observed that the state possesses India's largest bauxite reserves and more than half of the country's iron ore resources, making it the backbone of India's industrial ecosystem. He added that proactive policy reforms and investor-friendly governance have enabled Odisha to evolve from a supplier of raw materials into a value-added manufacturing hub capable of competing on the global stage. According to him, the IHC investment has the potential to transform local economies while strengthening India's manufacturing ambitions.
The significance of the agreement extends beyond its investment value. At a time when Indian states are competing aggressively to attract global capital, Odisha's ability to secure one of the country's largest foreign investments reflects growing international confidence in its governance framework, infrastructure readiness and industrial ecosystem. The project is expected to deepen India-UAE economic cooperation while reinforcing Odisha's emergence as a preferred destination for large-scale manufacturing investments.
The MoU exchange ceremony was attended by Industry Minister Sampad Chandra Swain; Chief Secretary Anu Garg; Syed Basar Shueb, Managing Director and Chief Executive Officer of IHC Group; Peter Abraham, Chief Strategic Officer of IHC Group; Ali Al-Rashdi, Chief Executive Officer of International Resources Holding (IRH); senior IHC executives Hesham and Abdulla Al-Rashdi; along with leading industrialists, senior government officials, investors and members of the diplomatic and business communities. The welcome address was delivered by Hemant Sharma, Additional Chief Secretary, Industries, Home, and Information & Public Relations Departments, who highlighted Odisha's rapidly evolving industrial ecosystem and the state's commitment to ease of doing business. The proceedings concluded with a vote of thanks by Aboli Sunil Naravane, Managing Director of IPICOL.
The IHC agreement is not merely another investment proposal—it is a statement of confidence in Odisha's economic future. As the state pursues its vision of becoming a globally competitive industrial economy by 2036, the project has the potential to redefine the aluminium sector, generate thousands of livelihoods, strengthen manufacturing value chains and position Odisha at the forefront of India's next wave of industrial growth. If implemented on schedule, the partnership could well become one of the defining milestones in the state's modern economic history.
