India’s steel and energy focused conglomerate JSW Group has selected Odisha for its integrated electric vehicles (EV) and battery manufacturing project that will mark the company’s foray into e-mobility.
A memorandum of understanding was signed with the Government of Odisha to set up the project at Cuttack and Paradip. JSW plans to invest ₹40,000 crore in the project, which will contain an EV battery plant, EV complex, lithium and copper smelting facilities, and EV-related components such as e-powertrain.
The investment will be made in two phases. In the first phase, JSW will spend ₹25,000 crore to set up a 50 GWh battery manufacturing plant and an OEM facility for EVs and components at Naraj, Cuttack. JSW said the battery plant – which it claims would be a largest single-location project in the sector – would cater to both energy storage systems as well as the e-mobility sector across commercial e-vehicles and passenger electric cars.
In the second phase, the company will invest ₹15,000 crore to set up an EV components manufacturing complex at the port township of Paradip. The complex will subsequently be expanded to comprise a copper smelter as well as a lithium smelter.
Odisha’s incentives for manufacturing EVs and new-age industries includes 30 percent capital investment subsidy with no upper cap, full exemption from electricity duty and a Rs 2 per unit power subsidy for a 10 years. The state also offers 50 percent incentive for environment-friendly infrastructure, and 100 percent reimbursement of state GST paid, subject to maximum of 200 percent of the cost of plant and machinery.
In a statement, Odisha Chief Minister Naveen Patnaik, said, “Through our collaboration with 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.”
JSW Group Chairman Sajjan Jindal commented: “Our long-standing relationship with Odisha and its people forms the foundation of our new venture. This project is a milestone in our journey, reflecting our commitment to the state’s development and prosperity.
For JSW, which is taking a second look at e-mobility, the biggest challenge will be making a dent in Tata Motors. It’s Mumbai-based rival accounts for over 70 percent of the country’s passenger EV sales. There is also the threat of Maruti Suzuki, the country’s largest automaker, which will enter the market in FY25. India’s EV penetration rate is a miniscule 2 percent at present. However, the government is eyeing a 30 percent share by 2030.