The JSW Group signed a memorandum of understanding with the Odisha government on Saturday for setting up an integrated electric vehicle (EV) and EV battery manufacturing project at Cuttack and Paradip.The project, which envisages an investment of Rs 40,000 crore over a three-year time period, aims to have manufacturing capacities for electric commercial (100,000 units per annum) and electric passenger vehicles (300,000 units per annum).
A 50 Gwh battery plant with cell production for both mobility and energy storage system, auto components like e-powertrain, a research and development centre, lithium refinery and a copper smelter are part of the investment plan.After getting the required approvals, construction of the facilities is expected to begin by the end of this year. Actual production is expected to begin in FY27, JSW group sources said. The state government and JSW expect to create 11,000 jobs from the project.
This is not just the largest-ever automotive investment in Odisha but the largest in the east of the country, which has so far failed to have a presence on India’s automotive landscape, as Haryana, Gujarat, Tamil Nadu and Maharashtra have dominated investments in this sector.Commenting on the development, Odisha chief minister Naveen Patnaik said, “Through our collaboration with the JSW Group, we are setting the stage for a future where innovation drives our industrial growth, ensuring that the youth of Odisha have access to the skills and jobs that will define the next generation of economic development.”Sajjan Jindal, chairman, JSW Group, said, “Our long-standing relationship with Odisha and its people forms the foundation of our new venture.”
“By integrating our operations within Odisha’s ecosystem, we aim to create a symbiotic relationship that benefits all stakeholders, fostering growth and innovation, and generating numerous high-skilled job opportunities,” Jindal added.The announcement comes a little over two weeks after the Competition Commission of India (CCI) approved the acquisition by JSW Ventures Singapore for up to 38% of the share capital of MG Motor India, the China-owned, SAIC-backed company.While electric cars have been planned for development with the help of SAIC and MG Motor, the electric commercial vehicles will be targeting the mini truck segment that caters to the intra-city, last mile transport.“The group will have more clarity on its EV and battery plans in the next two-three months,” said an industry source.In November last year JSW and SAIC entered into a strategic joint venture that looks to accelerate growth of MG Motor in India while also marking a separate entry of JSW into the EV space.
JSW is trying to create a space for itself in the burgeoning EV segment, which at present is controlled majorly by just one player, Tata Motors, with over 70% of India’s electric passenger vehicle market, while behemoth Maruti Suzuki will enter the segment only in FY25.At around 2%, India’s EV penetration in cars is relatively low compared to global markets, but is projected to touch 30% by 2030, translating to volumes of over 2 million units, according to Rocky Mountain Institute, an organisation that collaborated with government think tank Niti Aayog.
