The JSW Group has inked a Memorandum of Understanding (MoU) with the Odisha government to establish an integrated electric vehicle (EV) and EV battery manufacturing facility in Cuttack, with associated operations at Paradip. The project, estimated at Rs 40,000 crore, is anticipated to create employment opportunities for 11,000 individuals.
While Cuttack has been designated as the site for the EV and EV battery manufacturing plants, Paradip will witness the establishment of a copper smelter and lithium refinery. This mega initiative by the JSW Group signifies Odisha’s foray into the automobile manufacturing sector and represents the largest investment in the automotive industry in the state and eastern India.
Naveen Patnaik, the Chief Minister of Odisha, expressed that the state is undergoing a steady transformation and emphasized that JSW Group’s decision to establish the EV manufacturing unit in Odisha reflects the state’s evolving industrial landscape. He highlighted that this strategic move underscores Odisha’s commitment to sustainable development, positioning it as a significant player in India.
In a social media announcement, the Odisha Chief Minister stated that the project would stimulate the growth of Micro, Small, and Medium Enterprises (MSMEs), fostering the development of a dynamic ecosystem of ancillary industries. While the project is expected to generate 11,000 jobs in the state, it will also catalyze employment opportunities in ancillary and support services, bolstering MSME development and creating a myriad of opportunities in the auto component supply chain and services sector.
Sajjan Jindal, Chairman of the JSW Group, cited Odisha’s stable leadership, unparalleled government support, and robust resource and skill ecosystem as the reasons for selecting the state for its inaugural EV unit.
The EV plant and battery gigafactory mark the JSW Group’s strategic entry into the eastern Indian state, with the conglomerate valued at US$ 23 billion and engaged in diverse sectors including steel, energy, infrastructure, cement, paints, venture capital, and sports. With operations spanning across India, the US, Europe, and Africa, the Group employs nearly 40,000 individuals.
Odisha offers a comprehensive range of incentives for EV manufacturing and new-age industries, including capital investment subsidies, electricity duty exemptions, power subsidies, incentives for environment-friendly infrastructure, and SGST reimbursement.
As of December 2023, Odisha had over 81,000 EVs on its roads, encompassing e-two-wheelers, e-three-wheelers, passenger vehicles, and electric buses, according to Vahan data.
The MoU signing follows the Competition Commission of India’s approval of JSW’s proposed acquisition of up to a 38% stake in MG Motor India. In December 2021, the JSW Group unveiled the JSW Electric Vehicle (EV) Policy, providing up to Rs 300,000 incentives for Group employees to purchase electric vehicles, alongside the provision of free-of-cost dedicated charging stations and green zones at all JSW offices and plant locations.
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