The Karnataka government has approved ₹224.19 billion (~$3.03 billion) to establish an electric vehicle (EV) manufacturing base in the state. It also approved ₹42.40 billion (~$574 million) for two wind-solar hybrid projects.
The EV manufacturing base is expected to generate 4,881 jobs in the state, while the hybrid wind-solar projects could create 8,480 jobs. Chief Minister BS Yeddyurappa chaired the state’s high-level clearance committee meeting, where these initiatives were announced.
The meeting approved the following two projects floated by Bengaluru-based Elest Private Limited:
- An EV manufacturing unit at an investment of ₹142.55 billion (~$1.92 billion) on 85 acres of land in Hubli and Dharwad. The project is expected to generate 867 jobs.
- A lithium-ion cell and battery manufacturing unit at an investment of ₹63.39 billion (~$858.22 million) on 88 acres of land in Hubli and Dharwad. The project is expected to generate 1,804 jobs.
Elest is promoted by the Directors of Rajesh Exports, a jewelry business.
The committee approved Bengaluru-based Hyunet Private Limited’s project to manufacture lithium batteries and EV manufacturing unit with an investment of ₹18.25 billion (~$247.01 million) on 300 acres of land in Bagepalli taluk of Chikkaballapura district. The project is expected to generate 2,210 jobs.
The state government also approved Hyderabad-based Miraculum Green Power Private Limited’s project to set up a 110 MW wind-solar hybrid project on 700 acres of land across three villages in Davanagere district’s Jagalur taluka with an investment of ₹12.90 billion (~$174.64 million). The project is expected to generate 2,820 jobs.
The fifth project approved is a wind-solar hybrid project to be set up by the Hyderabad-based Sanali Power Private Limited with an investment of ₹29.50 billion (~$399.37 million). It is proposed to be set up on 1,710 acres of land in Davanagere district’s Jagalur taluka. The project is expected to generate 5,640 jobs.
In the state budget announced in March 2020, the government allocated ₹100 million (~$13.56 million) to establish an electric vehicle and energy storage manufacturing cluster in the state. With this, Karnataka became the first state to have an electric vehicle and energy storage policy in the country.
Under the FAME India-II (Faster Adoption and Manufacturing of Electric Vehicles in India) program, 300 air-conditioned electric buses are being added to the fleet of Bengaluru Metropolitan Transport Corporation (BMTC).
However, the state Budget 2020-21 had no mention of any plans or projects related to renewable energy sources.
Read Mercom’s year-end review of the EV sector here.
Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.