China's second largest aluminium giant will invest $651 million in India to form a 50:50 joint venture with Mumbai-based Ashapura Minechem Co to produce alumina, state media reported on Wednesday.

China's Qingtongxia Aluminium Group has received approval from the National Development and Reform Commission, the country's top planning agency, for an alumina mining and processing joint venture in India, the Shanghai Securities News reported.

Qingtongxia Group is based in south China's Ningxia Hui Autonomous Region. The proposed venture will have an annual capacity of one million tonnes.

This is the Chinese company's first investment in alumina, the main raw material for aluminium production. The investment is set to be China's biggest investment in India so far, the report said.

However, the Indian mining company has not said anything on the JV with the Chinese company.

The Ashapura Group is India's largest mine owner, processor and exporter of bentonite, bauxite, allied minerals and their multi-application, multi-industry value added products.

It is also among the five largest bentonite producers in the world with a global presence and a volume of more than 50,00,000 tonnes.

The Chinese government is constantly encouraging domestic companies to go global in view of the severe resource shortage faced by the country which has to sustain its double-digit economic growth by relying more on overseas supplies.