Foundation Laid for Strategic Expansion

Odisha’s Chief Minister Mohan Charan Majhi inaugurated the groundbreaking ceremony of IMFA’s newest ferrochrome plant on May 23, 2025. The state-of-the-art facility is being constructed at the Kalinga Nagar Industrial Complex in Jajpur District. The event marked a pivotal moment for India’s ferro alloys sector, with IMFA reinforcing its commitment to industrial advancement and energy transition.

Project Specifications & Investment

The upcoming plant represents an investment of ₹800 crore ($96 million) and will span 124.26 acres of industrial land. With an annual capacity of 100,000 metric tons, the facility is scheduled to begin Phase 1 production by the first quarter of fiscal year 2026–27. Once operational, the plant will raise IMFA’s total ferrochrome output to 384,000 metric tons per year, consolidating its status as the country’s largest producer in this segment.

Role in India’s Steel Supply Chain

Ferrochrome, an essential alloying element in stainless steel production, is in rising demand both domestically and globally. IMFA’s new plant is expected to bolster supply chains for downstream industries, particularly stainless steel manufacturers. This move comes at a time when India’s stainless steel consumption is projected to grow at over 7% annually, driven by construction, transport, and consumer durables.

Green Energy Collaboration

In a significant step toward sustainable production, IMFA has entered a power purchase agreement with JSW Green Energy. Under the deal, the Kalinga Nagar unit will receive 70 MW of hybrid renewable energy, comprising solar and wind sources. This clean energy commitment aligns with IMFA’s broader environmental strategy and India's national target of achieving net-zero CO₂ emissions by 2070.

Employment & Regional Development

The new facility is expected to generate both direct and indirect employment opportunities in Jajpur and surrounding regions. IMFA estimates that hundreds of skilled and semi-skilled jobs will be created during the construction and operational phases. In addition to industrial growth, this will contribute to socio-economic development in Odisha’s mineral-rich belt.

Policy Support & Strategic Location

Odisha’s proactive industrial policies and mineral availability make it a key destination for metallurgical investments. Kalinga Nagar, often dubbed as India’s “Steel Hub,” offers strong logistical connectivity, access to raw materials like chrome ore, and a skilled workforce. Government officials emphasized that the IMFA plant exemplifies successful public-private synergy for regional growth.

Decarbonization & Technological Innovation

Besides renewable power usage, IMFA plans to integrate energy-efficient technology and emission monitoring systems in the new plant. These measures are designed to reduce environmental impact and enhance operational efficiency. The plant is expected to lower its carbon footprint compared to older units by leveraging high-grade feedstock and optimized furnace design.

IMFA’s Vision for the Future

Founded in 1961, IMFA has steadily evolved into a key player in India’s ferro alloys market. With this new facility, the company is positioning itself to meet future global demand while adhering to environmental, social, and governance norms. As international buyers increasingly value low-carbon products, IMFA’s investment in green ferrochrome could unlock export opportunities, especially in Europe and Southeast Asia.

Key Takeaways:

• IMFA is investing ₹800 crore ($96 million) in a new ferrochrome plant in Odisha with 100,000 metric tons annual capacity.

• The unit will be powered by 70 MW of hybrid renewable energy under a partnership with JSW Green Energy.

• This expansion strengthens IMFA’s production to 384,000 metric tons per year, enhancing India's stainless steel supply chain.