Vedanta Accelerates Expansion Plans with Land Acquisition for 3 MTPA Aluminium Smelter in Odisha!

Vedanta Ltd, one of India’s leading natural resources and metals companies, is taking decisive steps toward expanding its aluminium production capacity by initiating land acquisition for a new 3 million tonnes per annum (MTPA) aluminium smelter in Dhenkanal, Odisha. The announcement was made by Rajiv Kumar, CEO of Vedanta’s Aluminium Business, during the recently concluded ALUMEX India 2025 event in New Delhi (September 10–13).

Kumar emphasized that the new smelter project is central to Vedanta’s vision of becoming a global leader in aluminium production. “We are progressing towards establishing a new large-scale aluminium plant in Dhenkanal with a capacity of three million tonnes,” he said, adding that the land acquisition process is already in motion and showing positive momentum.

Currently, Vedanta operates with an aluminium production capacity of 3 MTPA. With this new facility, the company aims to double its capacity to 6 MTPA, positioning itself not only as India’s largest aluminium producer but also as a major player in the global market. The project, once operational, is expected to be one of the largest aluminium smelters in Asia.

The scale of the proposed greenfield smelter is vast, and its impact on regional development could be transformative. According to Kumar, the project has the potential to generate more than 200,000 jobs, directly and indirectly, across Odisha and beyond. From skilled manufacturing roles to ancillary services, the employment opportunities are expected to strengthen the state’s industrial ecosystem.

However, Kumar also pointed out the challenges inherent in aluminium manufacturing. Smelters are highly capital-intensive ventures, often requiring significant upfront investment and complex infrastructure development. A plant of this scale, he noted, would typically take three to four years to become fully operational once groundwork and construction commence.

Vedanta has already established itself as a leader in producing aluminium billets, which are essential raw materials for the extrusion industry. The company currently manufactures around 580 kilo tonnes of billets annually. With rising domestic and international demand, Vedanta has set its sights on doubling billet production capacity in the near future, ensuring a steady supply for industries such as construction, transport, and consumer goods.

In addition to upstream expansion, Vedanta is also pushing forward with plans to deepen domestic value addition through downstream integration. The company announced its intention to develop a new aluminium park in Jharsuguda, Odisha. This park will provide a dedicated industrial hub for downstream manufacturers to set up operations closer to Vedanta’s smelting facilities. By creating an ecosystem where raw material supply and finished goods production coexist, Vedanta aims to boost efficiency, reduce costs, and support the government’s “Make in India” initiative.

Vedanta’s expansion strategy aligns with India’s broader ambitions to enhance self-reliance in critical metals and reduce dependence on imports. Aluminium, often termed the “metal of the future,” plays a vital role in renewable energy, electric vehicles, aerospace, and infrastructure—sectors at the heart of India’s growth story.

With the Dhenkanal smelter project and the proposed Jharsuguda aluminium park, Vedanta is not only scaling up its own operations but also laying the foundation for a vibrant aluminium industry ecosystem in India. If executed as planned, these initiatives will firmly establish Odisha as the country’s aluminium capital and strengthen India’s standing in the global metals market.