Odisha Cabinet clears ₹17,250-cr Kalyani Group manufacturing complex in Dhenkanal

Odisha Chief Minister Mohan Charan Majhi chaired a Cabinet meeting on Saturday (January 31, 2026), approving an integrated automotive, aerospace and defence equipment-component manufacturing complex proposed by Kalyani Group in Dhenkanal district, involving an estimated investment of ₹17,250 crore.

The project, to be developed over 1,100 acres at Gajamara, will include a speciality steel unit by Kalyani Steel, a super alloy project by Saarloha Advanced Materials Private Limited, and an industrial component casting and forging unit by Bharat Forge, the State Government said in a statement.

Addressing a press conference after the Cabinet meeting, Chief Secretary Anu Garg said the project is expected to generate more than 4,800 direct and about 5,500 indirect jobs during construction and initial operations, with total employment projected to exceed 20,000 as vendor parks and ancillary ecosystems scale up.

The government said the project would strengthen Oaisha’s position in strategic materials such as titanium and speciality steel, boost downstream value addition within the State, and reduce dependence on imports for critical components and advanced materials.

The cluster model, with co-located production units and vendor parks, is expected to improve competitiveness through shared infrastructure, logistics efficiencies, and streamlined compliance support, resulting in faster scaling and higher productivity.

In another important decision, the Cabinet approved the continuation of international flights with the State’s viability gap funding (VGF) support.

The proposal relates to international operations currently undertaken by lndiGo, covering routes connecting Bhubaneswar with Dubai and Singapore, which were initiated earlier with State VGF support to address initial commercial viability gaps was approved.

“The VGF support is proposed for six more months (October 27, 2025, to March 29, 2026) under the new destination policy, considering the sharp decline in passenger load factor after withdrawal of earlier support and the risk of route discontinuation,” the government said.