The Rs 40,000 crore integrated electric vehicle plant and battery gigafactory is to come up in Cuttack and marks the JSW Group's strategic entry into Odisha, which sees its first mega automobile manufacturing investment.
10 Feb 2024 | 6668 Views | By Ajit Dalvi
The JSW Group has signed a Memorandum of Understanding with the government of Odisha to set up an integrated electric vehicle (EV) and EV battery manufacturing plant at Cuttack, and associated operations at Paradip. The investment in the project is estimated at Rs 40,000 crore and will help generate employment ...
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The JSW Group has signed a Memorandum of Understanding with the government of Odisha to set up an integrated electric vehicle (EV) and EV battery manufacturing plant at Cuttack, and associated operations at Paradip. The investment in the project is estimated at Rs 40,000 crore and will help generate employment for 11,000 people.
While Cuttack has been chosen as the site for the electric vehicle and EV battery manufacturing plants, Paradip will see the setting up of a copper smelter and lithium refinery. The JSW Group's mega project marks Odisha's entry into the automobile manufacturing sector and also the largest automotive industry investment in the state as well as the eastern part of India.
Naveen Patnaik, chief minister of Odisha, said that the state is on a steady path of transformation and that the setting up of the JSW Group’s EV manufacturing unit in Odisha is a testament to the state's evolving industrial landscape. This strategic move underscores the state's commitment to sustainable development, and thereby, positions Odisha as a pivotal player in India, he added.
In a social media post, the Odisha chief minister said that the project will catalyse the growth of MSMEs, spurring the development of a vibrant ecosystem of ancillary industries. While the project will help create jobs for 11,000 jobs in the state, it will also spur employment generation in ancillary and support services and also catalyse MSME development, opening a plethora of opportunities in the auto component supply chain and services sector, he added.
Sajjan Jindal, chairman of the JSW Group, said JSW chose Odisha for its first EV unit for its stable leadership, the State government’s unparalleled support to industries, as also its resources and skill ecosystem.
The EV plant and battery gigafactory mark the US$ 23 billion JSW Group’s strategic entry into the eastern India state. Ranked among the country’s leading business houses, it is engaged in key sectors including steel, energy, infrastructure, cements, paints, venture capital and also sports. With operations spread across India, the US, Europe and Africa, the Group employs nearly 40,000 people.
Odisha offers a high level of incentives for manufacturing EVs and for new-age industries. This includes 30% capital investment subsidy with no upper cap, 100% exemption from electricity duty and Rs 2 per unit power subsidy for a 10-year period, 50% incentive for environment-friendly infrastructure, and 100% reimbursement of SGST paid, overall limited to 200% of the cost of plant and machinery.
In terms of EV ownership, as per Vahan data as of end-December 2023, Odisha had over 81,000 EVs on its roads. These include 70,813 e-two-wheelers, 8,369 e-three-wheelers, 1,860 passenger vehicles and 51 electric buses
The MoU signing comes around two weeks after the Competition Commission of India gave its go-ahead for JSW's proposed acquisition of up to a 38% stake in MG Motor India.
In December 2021, in a first-of-its-kind initiative, the Mumbai-based JSW Group had unveiled the JSW Electric Vehicle (EV) Policy for its employees across India. This facilitates an up to Rs 300,000 incentive for Group employees to purchase electric vehicles – four-wheelers as well as two-wheelers – as part of a drive to promote the adoption of EVs across the Group. Apart from financial incentives, free-of-cost dedicated charging stations and green zones (parking slots) for electric vehicles would provided at all JSW offices and plant locations for employees.
Images: CMO Odisha/X
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