Essel has asked its employees who are associated with the proposed EV project to leave.
In a move to reduce its debt, Essel Infraprojects Ltd has halted plans to build electric vehicles (EV), reported Mint quoting sources. The Subhash Chandra-led firm has a debt of Rs 11,466 crore and the company is aiming to reduce it first, the daily said.
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According to the report, the company has also asked some employees who are associated with the proposed EV project to leave.
Last year, Essel had announced that it will invest Rs 3,500 crore in electric vehicle project which included buses, three-wheelers and establishment of infrastructure such as charging stations. In addition, it had also planned to set up a lithium-ion battery manufacturing plant in Andhra Pradesh, said the report.
The company had conducted detailed studies and was trying to raise funds by divesting stakes in its road infrastructure, renewable energy and power transmission businesses, the report said, adding that it had also initiated talks with potential buyers to sell much of this portfolio.
However, the company spokesperson told the daily that Essel remains committed towards the EV plan. "However, it is too premature to comment on the electric vehicle business as the company is evaluating the technology and processes through detailed trials at Mohali and would launch as and when we are convinced with the analytics and relevant data points,” he was quoted as saying in the report.
First Published: Apr 10, 2019 10:10 AM IST