As part of its diversification plans, JSW Energy plans to foray into manufacturing of electric cars, batteries and charging infrastructure.
The private player intends to invest up to Rs 4,000 crore into this new venture.
JSW plans to roll out its first electric car by 2020, which will make it the first non-automotive company in India to enter electric car business, as well as making batteries and supporting charging infrastructure, Prashant Jain, chief executive of JSW Energy said.
India has proposed a 15-year roadmap for rolling out electric vehicles and is also auctioning solar power capacity as part of a push to triple renewable energy generation by 2022 and to cut greenhouse gas emissions.
Jain, speaking after JSW reported first-quarter results, said energy storage was the right focus for the company, which has limited growth opportunities in the power sector and surplus cash.
JSW, part of the JSW Group, which also includes JSW Steel, plans to build electric storage batteries for vehicles, telecom towers, household use and renewable power, he said.
The company, with robust finances and a strong track record in efficiency, is scouting for manufacturing locations and technology partners for electric vehicles and will sell the car under JSW brand name.
Jain did not elaborate how the company plans to make profits for shareholders from a venture which does not have a proven business model, but said it is betting big on the falling costs of electric vehicles and incentives offered by the government.
He said in just three years time the cost of a conventional car in India will be equal to an electric car.