Bhubaneswar, April 9: Hindalco Industries, an AV Birla group company, has signed a memorandum of understanding (MoU) with the Orissa government to set up an aluminium complex at a cost of Rs 11,000 crore.

The integrated aluminium project will comprise a refinery of one million tonnes per annum, a smelter plant with an annual capacity of 2.6 lakh tonnes, a captive power plant of 650 MW and bauxite mines of three million tonnes of annual capacity.

?The MoU with the state government marks a key milestone creating a very strong global growth platform for the company?s aluminium business,? Aditya Birla group chairman Kumar Mangalam Birla said.

This is the second such major alumina project to come up in Orissa.

Larsen & Toubro (L&T) had earlier this week entered into an understanding with Dubai Aluminium Company Limited (Dubal) to set up an integrated bauxite mining cum alumina refinery project in Orissa at an estimated cost of Rs 5,000 crore.

The aluminium smelter and captive power plant will be located at Lapanga in Sambalpur district; the alumina refinery will come up at Kansariguda of Raygada district.

Hindalco managing director D. Bhattacharjee and Orissa industries secretary G. C. Pati signed the deal. This is the 26th MoU in mining signed by the Naveen Patnaik government.

Birla also announced an investment of Rs 850 crore for the expansion of its 65,000-tonne smelter plant at Hirakud. The smelter would be expanded to 1 lakh tonnes per annum in four years.

The funds for the project would be sourced from internal accruals as well as through debts, he said adding that more than 6000 people would get jobs. The project is expected to generate an annual revenue of Rs 500 crore.

The state government will provide a single-window support to the project through Industrial Promotion and Investment Corporation Limited and vital infrastructure linkages through Industrial Infrastructure Development Corporation. The Orissa Mining Corporation will provide the mining linkages till the company gets the mining lease.