JSW Greentech Ltd, a JSW group entity, intends to raise approximately Rs 1,487 crore through a long-term loan to establish a greenfield facility in Aurangabad, Maharashtra, to manufacture electric buses and trucks, as well as a supporting eco-system.
It is anticipated that the automotive facility will produce 5,000 e-trucks and 10,000 e-buses a year. Funding for the capital expenditure (capex) of the vehicle and component manufacturing facility will come from JSW Group equity infusion and debt (Rs 1,487.5 crore). JSW Greentech's long-term loans have been rated 'A-' by rating agency Icra, indicating stability.
The project has been financially closed, and the credit has been sanctioned for over a decade. There will be a one-year moratorium following the scheduled commercial operations date (SCOD). The project's SCOD is July 2027, as per Icra's rating rationale statement for term loans.
By January 6, 2025, the company had only incurred 3% of the project cost, which was funded through equity.
JSWGTL has signed early-stage MoUs with group companies and third-party operators, reducing off-take risk.
Icra ratings consider the financial flexibility of the JSW group, a leading conglomerate with presence in sectors such as steel, energy, infrastructure, cement, ecommerce, sports, and venture capital.
