When private power producer JSW Energy said on Friday that it had decided to drop an earlier decision to pursue an electric vehicle (EV) business, this was the second time in six months that it decided to step back from a formally announced diversification.
Yet, analysts see this decision and the earlier one as financially prudent. Earlier, JSW Energy decided to not pursue a plan for an entry into solar power, battery manufacturing and energy storage.
“It is good the company is assessing the market and withdrawing from plans which are not feasible, and being humble about it, rather than venturing into and losing out on margins and returns,” said an analyst with a domestic brokerage, who did not wish to be identified.
