Replying to a question, the minister of state for heavy industries Krishan Pal Gurjar told the Lok Sabha during Question Hour that Tesla is yet to apply for schemes as per the government’s policy. He made it clear that relaxations will not be provided to the US-based electric vehicles maker unless it participates in manufacturing activities in India. There cannot be a situation where the market is India, but jobs are created in China, said Gurjar.
In 2021, Elon Musk-led Tesla sought a reduction in import duties on electric vehicles (EVs) in India, but the Ministry of Heavy Industries asked the company to start manufacturing its vehicles in the country before any tax concessions can be considered. Last month, Tesla founder and CEO Elon Musk said the company is working through a lot of challenges with the government to launch its products in India.
The minister of state was responding to a member’s query about the government’s position on exemptions sought by Tesla and some states expressing interest to have the company’s manufacturing units. He also highlighted the government’s Production Linked Incentives (PLI) scheme for automobile and auto components as well as for manufacturing Advanced Chemistry Cell (ACC) batteries. Both schemes are open for domestic as well as foreign entities.
The minister said, for the promotion of EVs, there are schemes, and the benefits are that advanced technology will come to India and parts will also be manufactured here. People will get jobs and consumers will get cheaper vehicles, he added.
The minister also briefed about the recent roundtable organised that saw the participation of representatives of several companies and associations like the Society of Indian Automobile Manufacturers (SIAM). All the participants said in one voice that the government has done what it had to and that it was now time for the industries to come forward, the minister added.