JSW En­ergy Aims to Hit the Road With Elec­tric Ve­hi­cles by 2020

The Economic Times - - Companies & Economy -

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.

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