Odisha on Friday added another major investment to its industrial pipeline, signing an agreement with Japan’s IHI Corporation and Gurugram-headquartered ACME Group for clean energy and projects involving a cumulative investment of ₹67,000 crore.
The memorandum of cooperation (MoC) was signed a day after the state secured the country’s largest proposed foreign direct investment in mining and metallurgy through the $11.5-billion aluminium project to be set up by a joint venture between Adani Enterprises Limited and UAE’s International Resources Holding.
The MoC was inked during a visit by the Japanese business delegation, reflecting the state’s push to deepen economic ties with Japan and attract investments. It is part of the historic India-Japan clean energy partnership jointly announced by Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi in New Delhi.
Under the proposed investment plan, the consortium will establish a 405,000 tonne per annum green ammonia project at Tata Steel SEZ in Ganjam district’s Gopalpur with an investment of ₹20,000 crore. Along with this, a jetty-less floating terminal infrastructure will be developed in Gopalpur with a further investment of ₹1,000 crore to facilitate exports.
The second and larger project involves an 800,000 tonnes per annum green ammonia plant in Paradip, Jagatsinghpur district, with an investment of ₹34,000 crore. The investment proposal also includes a green methanol project at Paradip involving an additional investment of ₹12,000 crore, taking the total proposed investment to ₹67,000 crore.
The proposed investments on large-scale green ammonia and methanol production are expected to generate around 7,000 jobs and strengthen Odisha’s emergence as a hub for green hydrogen, renewable energy and advanced manufacturing.
ACME’s Gopalpur project has been selected under Japan’s flagship Contract for Difference subsidy programme, seeking to bridge the cost gap between green and conventional ammonia for various Japanese off-takers for a 25-year period starting September 2030 for delivery of clean ammonia to Japan.
Besides investments, the partnership is expected to facilitate technology transfer, strengthen sustainable industrialisation and create opportunities for ancillary industries, small businesses and skilled youth. The collaboration also seeks to leverage Odisha’s natural resources, strategic coastal location and industrial ecosystem to develop globally competitive clean energy and industrial projects.
Chief Minister Mohan Charan Majhi described Japan as one of India’s most trusted development and investment partners. He said the MoC with IHI Corporation and ACME Group marked another important milestone in Odisha’s industrial journey.
He invited more Japanese companies to invest in the state. “Such partnerships will help build globally competitive industries, create quality employment, facilitate technology transfer and contribute towards the vision of Samruddha Odisha 2036 and Viksit Bharat 2047,” he said.
Hiroshi Ide, representative director and president of IHI Corporation, said Odisha offered a unique combination of industrial capability, strategic location, natural resources and a strong commitment to sustainable industrial development. He said the company looked forward to working closely with the Odisha government and ACME Group by bringing Japanese technology expertise to develop projects that would contribute to India’s clean energy transition while creating long-term industrial value, employment and economic growth in Odisha.
Japanese industry leaders also discussed expanding collaboration across green hydrogen, green ammonia, aerospace, advanced manufacturing, shipbuilding, machinery, chemicals, steel, logistics, renewable energy and industrial infrastructure. Representatives from Mitsubishi Gas Chemical Company and several other Japanese enterprises held discussions with the Odisha government to explore future investment opportunities in these sectors.
Manoj Upadhyay, founder and chairman of ACME Group, said the company is committed to building globally competitive clean energy ecosystems that support India’s energy transition and industrial growth.
“The collaboration combined policy support from the Odisha government, Japanese technology and ACME’s project development expertise to explore next-generation green energy solutions. The locations in the state are strategically suitable as the green ammonia produced here can reach Japan faster,” he said.
Industries Minister Sampad Chandra Swain said Odisha has emerged as one of the country’s most attractive investment destinations because of its industrial policies, modern infrastructure and responsive governance. He assured investors that the government will provide seamless facilitation to ensure timely implementation of the proposed projects and expressed confidence that Odisha’s engagement with Japanese industry would continue to expand.