JSW Group to invest Rs40,000-cr for creating an EV manufacturing ecosystem in Odisha
11 Feb 2024
JSW Group has entered into a memorandum of understanding (MoU) with the Odisha government for establishing an integrated electric vehicle and EV battery manufacturing project in the state, involving an investment of Rs40,000 crore.
The proposed project, to be set up in Naraj, in Cuttack district, comprises an electric vehicle and component manufacturing plant. The project also includes a copper smelter and lithium refinery, including a 50 GWH EV battery plant, EV manufacturing unit, lithium refinery, copper smelter, and related component manufacturing facilities in Paradip, Jagatsinghpur district.
The state cabinet has recently approved a special incentive package for the JSW Group’s EV and component manufacturing projects, leading to the signing of the MoU.
“This day marks a great leap forward in the state’s journey towards industrial excellence and sustainable development. Powered by the 5T (transformational) initiative, Odisha is on a steady path of transformation. The establishment of the JSW Group’s electric vehicle manufacturing unit is a testament to our state’s evolving industrial landscape. This strategic move underscores our commitment to sustainable development, thereby, positioning Odisha as a pivotal player in India,” chief minister Naveen Patnaik said on the occasion.
He said, besides providing livelihoods to thousands of families, the EV project and associated facilities will lead to growth of several small and medium enterprises, including ancillary industries, in the state, leading to substantial progress in the socio-economic development of Odisha. Additionally, the project will mark Odisha’s entry into the ever expanding automobile industry in India, he added.
The project is expected to create over 10,000 jobs, contributing significantly to employment generation in the state, besides catalyzing the state’s industrial growth.
JSW Group chairman Sajjan Jindal said the project is a milestone, reflecting JSW Group’s commitment to the state’s development and expressed confidence in Odisha’s potential to become a `Trillion Dollar’ economy.
Odisha offers a streamlined approval process for investors in electric vehicle (EV) and EV components manufacturing, ensuring completion of the process within just 30 days. The streamlined approval process makes access to 54 industrial services across 18 departments a smooth process, according to the state government.
Also, the state government will actively invest in road connectivity at the factory gate, besides ensuring strategic connectivity services at key locations such as Paradip, Gopalpur, and Dhamra, making Odisha an attractive hub for EV and EV component manufacturers.
The Odisha government’s Industrial Policy Resolution 2022 provides for incentives for the manufacture of electric vehicles (EVs) and other emerging industries. The incentives include:
- Capital Investment subsidy of 30 with no upper cap
- Full exemption from electricity duty and Rs2/ unit power subsidy for 10 years
- Full reimbursement of employer contribution towards ESI and EPF scheme for 7 years
- Full reimbursement of net SGST paid, with overall limit of 200 per cent of the cost of plant and machinery
- Share of 50 per cent cost for environment-friendly infrastructure.