The JSW Group has signed a Memorandum of Understanding with the Odisha government to establish an integrated electric vehicle (EV) and EV battery manufacturing factory in Cuttack, with accompanying businesses in Paradip. The project’s investment is anticipated to be Rs 40,000 crore, which will create 11,000 jobs.
While Cuttack has been picked as the location for the electric car and EV battery production plants, Paradip will witness the establishment of a copper smelter and lithium refinery. The JSW Group’s massive project represents Odisha’s first foray into the vehicle manufacturing sector, as well as the largest automotive industry investment in the state and eastern India.
Odisha’s chief minister, Naveen Patnaik, stated that the state is on a continuous road of development, and that the establishment of the JSW Group’s EV production plant in Odisha demonstrates the state’s growing economic environment. This strategic step demonstrates the state’s commitment to sustainable development, establishing Odisha as a key participant in India, he added.
In a social media post, the Odisha chief minister stated that the initiative will stimulate the expansion of MSMEs, resulting in the establishment of a thriving ecosystem of auxiliary industries. While the project would help create 11,000 jobs in the state, it will also stimulate employment in auxiliary and support services, as well as accelerate MSME growth, resulting in a multitude of opportunities in the auto component supply chain and services sector, he said.
Sajjan Jindal, chairman of the JSW Group, stated that JSW picked Odisha for its first EV unit because to its stable leadership, the State government’s unrivalled support for industry, and 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.
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