Bhubaneswar: The state cabinet meeting, chaired by chief minister Mohan Charan Majhi, on Saturday approved the Rs 17,250 crore integrated automotive, aerospace and defence equipment components manufacturing complex proposed by Kalyani Group in Dhenkanal district.Briefing the media, chief secretary Anu Garg said the integrated project is expected to generate over 12,000 direct and indirect jobs and will be a huge boost to the state’s new-age industrial pursuit.
The proposed complex will be developed over around 1,100 acres at Gajamara in Dhenkanal and is envisaged as an integrated industrial cluster comprising multiple production units, along with dedicated vendor parks. The cluster will focus on building downstream value chains in titanium, speciality steel, auto components, and aerospace and defence manufacturing.Additional chief secretary (industries) Hemant Sharma said that while the cabinet earlier approved a speciality steel complex, it now gave nod to the fully integrated manufacturing hub. The expanded project will include a super alloy unit of Saarloha Advanced Materials Pvt Ltd and an industrial components casting and forging unit of Bharat Forge, both part of Kalyani Group.“The integrated complex will enable far greater value addition, with sophisticated automobile and aerospace components manufactured and assembled within the state,” Sharma said.The project aims to facilitate Odisha’s transition from a supplier of raw materials to a producer of high-value, technology-intensive and export-oriented products, while strengthening localisation and reducing import dependence in strategic sectors, officials said.During the construction and initial operational phases, the project is expected to generate over 4,800 direct and around 5,500 indirect jobs. Total employment is projected to exceed 20,000 in subsequent years as vendor parks and ancillary ecosystems scale up.The integrated cluster is also expected to strengthen Odisha’s position in strategic materials such as titanium and speciality steel, enabling downstream value addition within the state and reducing dependence on imports for critical components and advanced materials. “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,” a govt statement said.State govt had signed an MoU with Kalyani Group in Feb 2024 and subsequently approved a customised incentive package for the project. As per the plan, the group will establish a 0.7 MTPA speciality steel plant (Rs 6,626 crore) and a 10,000 TPA titanium plant (Rs 5,124 crore). Saarloha Advanced Materials and Bharat Forge will also set up units for super alloys and critical, safety- and performance-intensive metal components catering to the aerospace, defence and automotive sectors by investing Rs 5,500 crore.
