Karnataka latest state to woo Tesla

Karnataka’s Minister for Large and Medium-scale industries Murugesh R Nirani has urged Elon Musk to set up a Tesla plant in the state by projecting the state as the “Electric Vehicle (EV) hub” of India with more than 400 R&D centres, 45+ EV startups and an EV cluster near Bengaluru. He also noted that Bengaluru is already the company’s “maiden address in India”.
 
Nirani tweeted, “With over 400 R&D centers, 45+ EV startups and an EV cluster near Bengaluru, Karnataka has emerged as EV hub of India. Mr Elon Musk, Karnataka would be an ideal destination to set up Tesla plant. Bengaluru is already Tesla’s maiden address in India.”

Prior to this, states like Telangana, West Bengal, Maharashtra, Punjab and Tamil Nadu had urged Musk to set up plants in their respective states. Tamil Nadu minister Thangam Thenarasu requested Musk to set up a plant in the state. In this tweet, the minister said that Tamil Nadu accounts for 34 percent share in total planned investments for electric vehicles and it is one of the top nine renewable energy markets in the world.

Punjab Congress president Navjot Singh Sidhu also invited the company to set up a plant in his state. Sidhu said that the Punjab model will create Ludhiana as a hub for EVs and battery industry with single window and time bound clearance for investment. He added this will help in job creation, environment preservation and sustainable development.
 
“I invite Elon Musk. Punjab Model will create Ludhiana as [a] hub for electric vehicles and battery industry with time bound single window clearance for investment that brings new technology to Punjab, create green jobs, walking path of environment preservation and sustainable development,” he tweeted.

States like Telangana, West Bengal and Maharashtra have also urged the US-based company to set up plant in their respective states. Maharashtra Water Resources Minister Jayant Patil tweeted, “Elon Musk, Maharashtra is one of the most progressive states in India. We will provide you all the necessary help from Maharashtra for you to get established in India. We invite you to establish your manufacturing plant in Maharashtra.”

These ministers were responding to a one-line tweet by Elon Musk, “Still working through a lot of challenges with the government.” Musk was responding to a user named Pranay Pathole who asked him when Tesla was coming to India.

The Government of India was quick to respond to Musk’s claims on the challenges Tesla is facing while working with the Indian government. Sources told Business Today that Musk is trying to pressure the government through social media and that Tesla wants the country to reduce import duties on its cars without committing to produce in the country.
 
They added that the government will not succumb to any pressure tactics and that the country has the PLI scheme for automobiles, especially EVs, under which Tesla will receive benefits if they produce locally. Tesla can bring cars in kits with zero percent duty and assemble them in India.
 
For the unversed, Tesla has been seeking a relaxation in import tariff on electric vehicles. Musk said that the import tariff of 100 percent with vehicles above $40,000 is ‘prohibitive’ for zero emission vehicles. Tesla also urged the government to reduce this tariff to 40 percent irrespective of the customs value and withdraw the social welfare surcharge of 10 percent on electric cars.
 
It further mentioned that these changes will bolster the development of Indian EV scenario. Tesla also mentioned that they will make investments in sales, services and charging infrastructure and increase procurement from India for its global operations.

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