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  • 31 март 2019
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JSW Group has abandoned its plans of entering the electric

JSW Group has abandoned its plans of entering the electric vehicles space owing to the high risks involved, the company said in a regulatory filing.

JSW Group has abandoned its plans of entering the electric
MUMBAI: More than 18 months after announcing its intentions to enter the electric vehicles manufacturing space, Sajjan Jindal-led JSW Energy has abandoned this plan owing to high uncertainties associated with the business as well as 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, had reported on March 2.
Calling the move as 'prudent risk management', the company in an exchange filing 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."
This move comes barely few days after the department of heavy industries and NITI Aayog released the second phase of Faster Adoption and Manufacturing of Electric (and Hybrid) vehicles (FAME) policy that ended subsidy for private buyers of electric four-wheelers. Industry experts say this acted as a catalyst for the company's decision to pull the plug on its plan.

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