JSW Energy Puts The Brakes On Electric Vehicle Business Plan
The company had planned to invest up to Rs 4,000 crore in electric vehicles.
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JSW Energy Ltd. has called off its plan to invest in the electric vehicle business citing uncertainties in the industry.
“Given higher-than-anticipated uncertainties associated with the EV business, the board has, after careful evaluation, decided not to pursue this business and maintain capital cushion for growth opportunities in power and other related businesses,” the company said in a stock exchange filing.
The Sajjan Jindal-led JSW Group had planned to venture into the electric car business by 2020, on expectations that the government would promote such vehicles and the falling battery prices would make such cars affordable. “I would have gone into engine-based car and probably I would have failed. Now, there is a great opportunity, there is a new technology. And I believe we can do a great job. We can build a nice and interesting electric car in India,” JSW Group’s Chairman Sajjan Jindal had told BloombergQuint in an interaction on Jan. 18, 2017 at the World Economic Forum in Davos.
The company had signed a memorandum of understanding with the Gujarat government to set up a Rs 4,000-crore electric vehicle manufacturing facility in the state.
Shares of JSW Energy ended 5.29 percent higher at Rs 72.60 on Friday.