No special policy for Tesla; can seek incentives under existing schemes: Govt official – EQ Mag
The government has rolled out the production-linked incentives schemes for advanced chemistry cell battery storage with an outlay of Rs 18,100 crore and Rs 26,058 crore PLI scheme for auto, auto-components, and drone industries.
- Centre has rolled out the production-linked incentives schemes (PLI) for advanced chemistry cell battery storage
- In 2021, Tesla demanded a reduction in import duties on electric vehicles in India
- Tesla representatives visited the country last month to meet officials of various ministries
The Indian government is not looking to frame a separate policy for providing incentives to electric car maker Tesla, and the company can apply to avail incentives under existing schemes like PLI for auto and advanced chemistry cells, a government official told the news agency PTI.
The government has rolled out the production-linked incentives schemes (PLI) for advanced chemistry cell (ACC) battery storage with an outlay of Rs 18,100 crore and Rs 26,058 crore PLI scheme for auto, auto-components, and drone industries.
The official said that the government has told the US-based car maker that the policies, which are already there for all, they can also apply under that PLI. “They (Tesla) are welcome. Generally, the policy will be the same for all. For a single company, the government may not like to make separate policies,” the official said, adding that there is no plan to give ‘special treatment’.
In 2021, Tesla demanded a reduction in import duties on electric vehicles (EVs) in India. However, the government has been asking Tesla to set up a manufacturing plant here in India and it will provide all the support.
In an interview with India Today, Union Minister for Road Transport & Highway Nitin Gadkari had said: “I asked Tesla officials not to make the car in China and sell it in India. It is something I had in my mind and I told them. Come to India, make it here, sell it here, and export from here. The government will provide you with all the help and support you need.”
The representatives of Tesla visited the country last month to meet officials of various ministries, including the Commerce and Industry Ministry.
At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60 per cent to 100 per cent, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000.
Tesla Inc’s chief Elon Musk met Prime Minister Narendra Modi last month in New York. After meeting the Prime Minister, Musk said he plans to visit India in 2024. “I am confident that Tesla will be in India, and we will do so as soon as humanly possible,” he said. “We don’t want to jump the gun on an announcement, but I think it’s quite likely that it will be a significant investment, a relationship with India,” he had said.
India, the world’s third-largest energy consumer, is pitching as an alternate destination for investment for US companies to capitalise on the growing chill between Beijing and Washington.
