The Odisha Mining Corporation Limited (OMC), an Odisha government public sector undertaking, on Thursday signed an MoU with Hindalco Industries for providing long-term raw material linkage for its alumina refinery project at Kansariguda in Rayagada district in presence of chief minister Naveen Patnaik.

Aditya Birla Group chairman Kumar Mangalam Birla joined the MoU signing ceremony virtually.

“The agreement will facilitate and speed up the work for a two-million-tonne alumina refinery in Rayagada,” said a media release issued by the chief minister’s office (CMO).

The alumina refinery of Aditya Aluminum Limited at Kansariguda is a green field project coming up with an investment of Rs 8,000 crore. “The project will create 1,000 direct jobs and 4,000 indirect employment opportunities. This is the transformative power of industry,” the CMO office said. At present, Hindalco has a Utkal alumina refinery plant located in the Kashipur block of the Rayagada district.

OMC managing director Balwant Singh and Hindalco managing director Satish Pai signed the agreement for their respective organisations.

Speaking on the occasion, the chief minister said Thursday marks a significant milestone in the journey of Odisha’s industrial growth and development. “Odisha is poised to become an industrial hub of the East, and this is not just our ambition but our mission. Let’s co-create a future where business and socio-economic growth go hand in hand, making Odisha a shining example for the world,” Naveen said.

Aware that a section of tribals are opposing the mining activities in the Rayagada district, Naveen appealed people of Rayagada to provide all support to the refinery project so that the work can start soon.

In June 2023, the Odisha government came up with a new “long-term linkage policy of minerals” for industries, facilitated through the Odisha Mining Corporation Limited.

“This policy was a commitment to foster an environment where industries can thrive, innovate, and contribute to the state’s socio-economic fabric. This MoU exemplifies our unwavering dedication to making Odisha a magnet for industrial investments,” Naveen added.

Industries & MSME minister Pratap Dev said that the partnership of the people is essential for industries.

Aditya Birla Group chairman Kumar Mangalam Birla said: “Through several decades of development, Odisha has made remarkable progress in several fields. The Odisha-Hindalco partnership is a symbiotic success story that is an exemplar of holistic development. The Utkal alumina plant generated thousands of new jobs and impacted lakhs of people in hundreds of villages through community development initiatives.

Birla further said that the second refinery would follow the same development model, seeding more opportunities in livelihoods and cascading more socio-economic development.