Vedanta Dhenkanal aluminium project

Dhenkanal, Odisha | September 12, 2025 — Vedanta is moving ahead with its mega aluminium project in Odisha, with land acquisition now underway for a 3 million tonnes per annum (MTPA) smelter in Dhenkanal. The ₹1.28 lakh crore investment, announced earlier this year, is among the largest industrial commitments in India’s recent history.

What Happened

On September 9–10, Vedanta CEO Rajiv Kumar confirmed that land acquisition was progressing smoothly. He stated:

“We are moving towards setting up a new mega aluminium plant at Dhenkanal with a capacity of three million tonnes… land acquisition is progressing very well.”

Background

• The project will double Vedanta’s aluminium capacity from 3 MTPA to 6 MTPA.
• In June 2025, the Odisha Cabinet under CM Mohan Charan Majhi approved the proposal.
• The smelter will be supported by a 4,900 MW captive power plant, ensuring energy security for operations.

Why It Matters

• Economic Impact: The project is expected to generate over 2 lakh jobs, directly and indirectly.
• Industrial Boost: Analysts at CMIE (Centre for Monitoring Indian Economy) have highlighted this as India’s largest Q1-FY26 manufacturing investment.
• Strategic Growth: Odisha aims to become a global aluminium hub and contribute significantly to India’s $5 trillion economy target.

Leadership Statements

• CM Mohan Charan Majhi: Called the investment “a milestone in Odisha’s journey to becoming a half-trillion-dollar economy by 2030.”
• Anil Agarwal, Chairman, Vedanta: Reaffirmed the company’s commitment to “inclusive growth and sustainable industrial development in Odisha.”

Criticism & Challenges

• Land Acquisition Sensitivities: While progress is reported as smooth, past large-scale projects in Odisha have faced compensation and resettlement issues. Analysts note that ensuring fair rehabilitation will be crucial for the Dhenkanal project’s acceptance.
• Environmental Clearance: The project will require approvals for its 4,900 MW captive power plant and industrial emissions. Stakeholders have highlighted the importance of green smelter technology to align with India’s sustainability commitments.

At present, no major disputes have been reported around the Dhenkanal smelter itself, but compliance with land, environmental, and community safeguards will be critical to long-term success.

Conclusion

Vedanta’s ₹1.28 lakh crore aluminium smelter project in Dhenkanal stands as a landmark step for both Odisha and India’s industrial ambitions. By doubling aluminium output and creating massive employment opportunities, the initiative has the potential to transform Odisha into a global metals hub while reinforcing India’s position in the international aluminium market. As land acquisition progresses, the project will be closely watched for its execution speed, community impact, and role in driving India’s economic growth over the next decade.