JSW Energy Aims to Hit the Road With Electric Vehicles by 2020
Rachita Prasad & Ketan Thakkar
Mumbai: Sajjan Jindal-led JSW Energy is diversifying into electric car manufacturing and aims to roll out its first such vehicle by 2020.
For this, the Mumbai-headquartered group has earmarked ₹ 3,500-4,000 crore as capital expenditure to be spread over three years, according to Prashant Jain, its chief executive officer. The group will manufacture electric vehicles, electrical batteries, and energy storage systems and charging infrastructure. This will be the first stint in a consumer business for the $11 billiongroup which has thus far primarily operated in power, steel, and mining industry.
“India is at an inflexion point and the three businesses that we have identified offer growth,” Jain, who is also the joint managing director, told ET. “While battery storage and charging infrastructure would be a forward integra- tion for us, electric vehicle is an adjacent business, but we believe it’s a huge opportunity as it will offer level playing field to new entrants.” Jain said JSW Energy is scouting for a technology partner in the electric vehicle space, including a supplier for electric powertrain.
The power utility, which has an operational capacity of 4,531 MW, plans to diversify to tap on the government’s push on electric vehicles to reduce carbon emission. Power minister Piyush Goyal has announced at several occasions in the past that the government is working on a road map to ensure all-electric car fleet in the country by 2030. Globally, countries and car makers are using hybrid vehicle as the bridge to arrive at the final vision of electrification, but the Narendra Modi-led government has an ambitious plan of leapfrogging to complete electrification.
Currently, electric vehicle prices are high due to expensive batteries and infrastructure to support these is almost non-existent.