Odisha Cabinet Greenlights Major Rs 17,250 Crore Industrial Complex
In a significant boost to industrial development in the state, the Odisha cabinet meeting chaired by Chief Minister Mohan Charan Majhi on Saturday granted approval for a massive integrated manufacturing complex proposed by the Kalyani Group. The project, valued at Rs 17,250 crore, is slated to be established in the Dhenkanal district and represents a major leap in the state's pursuit of new-age industries.
Project Details and Employment Generation
Briefing the media after the cabinet meeting, Chief Secretary Anu Garg revealed that this integrated project is expected to create substantial employment opportunities. During the construction and initial operational phases alone, it is projected to generate over 4,800 direct jobs and approximately 5,500 indirect jobs. As the project scales up with vendor parks and ancillary ecosystems, total employment is anticipated to exceed 20,000 positions in the subsequent years, providing a significant economic stimulus to the region.
Strategic Location and Industrial Focus
The proposed complex will be developed across approximately 1,100 acres at Gajamara in Dhenkanal. It is envisioned as an integrated industrial cluster comprising multiple production units along with dedicated vendor parks. The cluster will strategically focus on building downstream value chains in several critical sectors:
- Titanium manufacturing
- Speciality steel production
- Automotive components
- Aerospace and defence manufacturing
Expanded Scope and Value Addition
Additional Chief Secretary for Industries, Hemant Sharma, provided crucial insights into the project's expanded scope. While the cabinet had previously approved a speciality steel complex, the current approval encompasses a fully integrated manufacturing hub. This expanded project will include:
- A super alloy unit of Saarloha Advanced Materials Pvt Ltd
- An industrial components casting and forging unit of Bharat Forge
Both these entities are part of the Kalyani Group. Sharma emphasized that "the integrated complex will enable far greater value addition, with sophisticated automobile and aerospace components manufactured and assembled within the state."
Strategic Importance and Economic Transformation
Officials highlighted that this project aims to facilitate Odisha's strategic economic transformation from being primarily a supplier of raw materials to becoming a producer of high-value, technology-intensive, and export-oriented products. The initiative is expected to strengthen localization efforts while reducing import dependence in critical strategic sectors.
The integrated cluster is particularly significant for strengthening Odisha's position in strategic materials such as titanium and speciality steel. This development will enable downstream value addition within the state itself and reduce dependence on imports for critical components and advanced materials.
Infrastructure and Competitive Advantages
A government statement elaborated on the competitive advantages of this integrated approach: "Co-location of large manufacturing units with vendors is expected to enhance competitiveness through shared infrastructure, common utilities, logistics efficiencies and streamlined regulatory support, leading to faster scaling and higher productivity."
Background and Investment Breakdown
The state government had previously signed a Memorandum of Understanding with the Kalyani Group in February 2024 and subsequently approved a customized incentive package for the project. According to the detailed plan, the group will establish:
- A 0.7 MTPA speciality steel plant with an investment of Rs 6,626 crore
- A 10,000 TPA titanium plant with an investment of Rs 5,124 crore
Additionally, Saarloha Advanced Materials and Bharat Forge will set up units for super alloys and critical, safety- and performance-intensive metal components catering to the aerospace, defence and automotive sectors, with a combined investment of Rs 5,500 crore.
This comprehensive industrial development represents one of the largest private investments in Odisha's manufacturing sector and aligns with the state's vision of becoming a hub for advanced manufacturing and strategic industries.
