JSW Motors, the automotive division of billionaire Sajjan Jindal's group, has received a credit facility worth approximately 80 billion rupees ($826 million).from the state-owned Bank of India, which gives impetus to its plans to establish a vehicle manufacturing facility for new types of energy in India, Bloomberg reports.
The loan from India's largest lender is for a period of more than 10 years and will partially finance the construction of a new plant in the state of Maharashtra. SBI may later sell part of this loan to other lenders if there is demand in the secondary loan market. This financing is important for the developing ecosystem of electric vehicles in India and demonstrates the lender's confidence in the domestic automotive industry and potentially supports broader activity in the credit market, where credit growth is expected to outpace deposit growth this fiscal year. The planned JSW Motors vehicle will be the first Indian car brand in decades.
The broader JSW group, which already operates in the fields of steel, cement and electricity, also has partnerships with SAIC through JSW MG Motor India and with Chery in the field of new energy vehicles. The company says it is committed to consolidating its strong position in the new-energy passenger car market, with product and launch details to be announced later as India's electric and hybrid vehicle sector expands thanks to government incentives and growing demand for environmentally friendly mobility.
