The JSW group, on Saturday, announced the signing of a memorandum of understanding (MoU) to set up an integrated electric vehicles (EV) and EV battery manufacturing project at Cuttack and Paradip via a ₹40,000 crore investment.
Through this MoU, the group made public its strategic entry into the state amid competitive offers from other states. This announcement is also a key component of the company’s plan to manufacture electric vehicles. The company had announced a joint venture to own 35% in a newly-created JV with SAIC Motor Corp. Ltd (which owns MG Motor India) that would focus on EVs.
JSW said it will invest in the project in two phases. The company plans to invest ₹25,000 crore in Cuttack for the electric vehicle and its battery manufacturing complex, while ₹15,000 crore will be invested in the EV components manufacturing complex in Pradip.
The company will also have to build an ecosystem to manufacture EVs in Odisha, which lacks vehicle manufacturing ecosystem that states like Gujarat and Tamil Nadu have.
“By integrating our operations within Odisha’s vibrant ecosystem, we aim to create a symbiotic relationship that benefits all stakeholders, fostering growth and innovation, and generating numerous high-skilled job opportunities. It’s a testament to our belief in Odisha’s potential and our dedication to contributing positively to its economic landscape,” said Sajjan Jindal, chairman of JSW Group.
The world-class advanced technology-based project consists of a 50 GWH EV battery plant for both mobility & energy storage systems, commercial e-vehicles and passenger electric cars, auto components like e-powertrain, lithium refinery, copper smelter and related component manufacturing units.
The company will also set up an original equipment manufacturer plant for electric vehicles and components in the same integrated complex. This according to the company will be the world’s largest single-location project in the sector.
The company said it is proposing to create 11,000 jobs from the project — 4,000 in Cuttack and 7,000 in Pradip. “The project will also spur employment generation in ancillary and support services. It will catalyze MSME development, opening a plethora of opportunities in the auto component supply chain and services sector,” the company added.
This partnership, the company believes, not only underscores the state’s attractive investment climate but also the government’s strategic initiatives to position Odisha at the forefront of India’s EV and green technology sectors. The state government of Odisha will support the initiative through a special package of incentives.
“We are keenly focused on leveraging the opportunities presented by the new age sectors, aiming to create high-skill job opportunities for the people of Odisha. 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,” said Naveen Patnaik, Chief Minister of Odisha, on the occasion.
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Published: 10 Feb 2024, 01:36 PM IST