Last week, Indian billionaire industrialist Gautam Adani-led Adani Group announced an investment proposal of around $5 billion to build an alumina refinery in the country. However, the Ahmedabad-based multinational conglomerate plans to construct more than just a giant alumina plant.
Our report cites people familiar with the group who believe that Adani's current discussions with the Odisha government indicate the company is impassive about exploring aluminium production opportunities.
The flagship company of Adani Group, Adani Enterprises, received approval from the Odisha state government to set up two projects, including a 4 million tonnes per annum (mtpa) integrated alumina refinery.
Hemant Sharma, the Principal Secretary Industries Department, Odisha, said negotiations with the Adani Group are forwarding to aluminium from alumina.
"Aluminium production is highly power-intensive and needs to be located close to coal and water resources. This will be at a different location," Sharma added.
"The proposed investment of INR 41,653 crore includes an alumina refinery of 4 mtpa and a 175- megawatt (MW) captive power plant."
Earlier, the group stated at the time of the project's announcement, "Alumina is used in the aluminium production process and will set up this alumina refinery near potential bauxite deposits or already operational mines, and this will involve the production of smelter-grade (metallurgical grade) alumina, which will help India move towards creating import substitution.
Hindalco Industries, Vedanta and state-owned Nalco control the Indian aluminium market, with Adani Group emerging as the fourth major player.
Responses
