The Odisha government has approved a ₹17,250 crore Integrated Defence, Aerospace and Automotive Components Manufacturing Hub in Dhenkanal district, marking a major step towards expanding India’s domestic defence manufacturing capacity.

The proposal was cleared by the state cabinet led by Chief Minister Mohan Charan Majhi as part of Odisha’s broader industrial strategy to attract high-value manufacturing and reduce dependence on imports in strategic sectors. The project aligns with the objectives of the Industrial Policy Resolution (IPR) 2022, which prioritises defence, aerospace and advanced manufacturing.

The manufacturing hub will be developed over around 1,100 acres at Gajamara in Dhenkanal, making it one of the largest industrial investments in the state in recent years.

Kalyani Group to Lead the Project

The initiative will be spearheaded by the Kalyani Group, a major Indian industrial conglomerate with an established presence in defence and engineering manufacturing. As part of the project, multiple core facilities will be set up, including a specialty steel plant by Kalyani Steels Ltd, a super-alloy manufacturing unit by Saarloha Advanced Materials Pvt Ltd, and casting and forging units by Bharat Forge and its subsidiaries.

Together, these units are expected to form a downstream ecosystem supplying critical materials and components required for defence and aerospace applications.

Employment and Industrial Impact

Officials said the project is expected to generate around 4,800 direct jobs and 5,500 indirect jobs in its initial phases. With the development of vendor parks and ancillary units, total employment could exceed 20,000 over time.

The hub is also aimed at strengthening value-chain development in specialty steel, titanium and high-precision manufacturing, helping Odisha transition from a raw material supplier to a technology-driven manufacturing base.

Strategic Significance

The defence-aerospace hub supports India’s Atmanirbhar Bharat vision, particularly in sectors linked to national security and advanced engineering. By localising production of key materials and components, the project is expected to reduce import dependence and improve resilience against global supply chain disruptions.

Officials noted that the cluster-based approach — with dedicated vendor parks and shared infrastructure — is designed to improve efficiency, reduce logistics costs and attract further domestic and foreign investment.

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Next Steps

Infrastructure development at the site is expected to begin in phases, with road connectivity, utilities and common facilities planned to support high-precision manufacturing. The state government expects the hub to attract additional defence and aerospace companies over time, positioning Odisha as a key manufacturing destination in India’s strategic industrial landscape.

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