OB Exclusive: Is JSW Group Shifting Its Electric Vehicle & Battery Project From Odisha To Maharashtra?

Bhubaneswar: Barely six months after signing an MoU with the Odisha government for setting up an Integrated Electric Vehicles (EV) And EV Battery Manufacturing Project at Cuttack and Paradip, the Sajjan Jindal-led JSW Group could be planning to shift it to Maharashtra.

While the Odisha project has seemingly become uncertain though there is no official confirmation on it yet, the company’s recent announcement of a similar project in Maharashtra has raised eyebrows in industry circles. The change in dispensation in Odisha is being cited as a plausible reason for the possible exit.

Notably, the Maharashtra Cabinet recently approved seven big-ticket industrial projects, including major ventures from JSW Green Mobility Ltd and JSW Energy PS Eleven Ltd in the fields of electric and hybrid cars and lithium battery manufacturing with an investment totalling over Rs 52,200 crore.

Sources said JSW Energy PS Eleven Ltd’s mega lithium battery project will come up at Nagpur, in the Vidarbha region, at a cost of Rs 25,000 crore. It is expected to generate 5,000 jobs.

Similarly, JSW Green Mobility Ltd’s project, which will see the manufacturing of electric and hybrid cars in Chhatrapati Sambhajinagar at a cost of Rs 27,200 crore, is expected to generate over 5,200 jobs. It is envisaged that the plant will see the manufacturing of 5 lakh electric cars and 1 lakh commercial cars, sources said.

On February 10, the group had affirmed its commitment to Odisha for its potential for growth and signed an MoU for the establishment of an Integrated Electric Vehicles (EV) and EV Battery Manufacturing Project at Naraj in Cuttack and Paradip.

The pact was inked after the state cabinet approved a special incentive package for the group’s ambitious EV and component manufacturing projects at Naraj and Paradip in Jagatsinghpur district.

The proposed project with an investment potential of Rs 40,000 crore was projected to create employment opportunities for over 10,000 people.

The ambitious project proposed to set up a 50 GWH EV battery plant, EVs, lithium refinery, copper smelter and related component manufacturing units. While EV vehicle and component manufacturing plants were planned to be set at Cuttack, a copper smelter and lithium refinery was to come up at the port town of Paradip.

Establishment of the project would have marked a great leap forward in Odisha’s journey towards industrial excellence and sustainable development, besides turning the state into a pivotal player in the country.

Economic analysts are of the view that the ambitious project would have contributed immensely to the socio-economic upliftment of the region and the growth of MSMEs. It would also have pushed Odisha into the ever-growing automobile industry sector.

At the time of signing of MoU, JSW Group Chairman Sajjan Jindal had highlighted the multinational conglomerate’s commitment to Odisha. He said that JSW chose Odisha for its first EV unit for its stable leadership, state government’s unparalleled support to industries, besides its resources and skill ecosystem.

Industry experts wonder whether the move to shift the project to Maharashtra has got anything to do with the change of government in Odisha as the group was apparently banking heavily on a stable leadership in the state.

They are also of the opinion that the Mohan Majhi government should have initiated concrete steps to extend the required support to industries after taking charge on June 12. In the absence of a clear indication of assured support from the government, several investors, including JSW Group, appear to be apprehensive about the future of their proposed projects in the state.