JSW Energy shuns electric vehicles entry plans

Mumbai: Within two years of announcing its intentions to enter the disruptive electric vehicles manufacturing space, Sajjan Jindal-led JSW Energy has abandoned its plan owing to high uncertainties associated with the business as well as unfavourable policy for personal buyers, instead it intends to maintain capital for growth opportunities in the power sector.The company had earmarked Rs 6,500 crore for this venture and was in advanced talks with General Motors to acquire the latter's manufacturing facility in Talegaon, near Pune, ET had reported on March 2. According to people in the know, the talks between JSW and GM fell through a few weeks ago on consideration value for the acquisition.Calling the move as 'prudent risk management', the company in statement to Bombay Stock Exchange said, "...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."Earlier in the month, the government of India came out with Rs 10,000-crore incentives for the electric vehicles under FAME (Faster Adoption of Manufacturing of Electric (and Hybrid) vehicles) scheme which was largely focused on improving public transport and localisation of electric vehicles as against making it attractive for the personal buyer space.This people in the know said acted as a catalyst for the company's decision to pull the plug on its plan.The sops extended by the government was expected to support one million electric two-wheelers, 500,000 three-wheelers, 55,000 two-heelers and 7,000 buses will be included in the new phase of the scheme.

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