FinMin not considering tax waivers for Tesla: Revenue Secretary

Ministry of Finance is not considering any duty waivers for US automaker Tesla Inc, Revenue Secretary Sanjay Malhotra said on Thursday.

Last month, Tesla CEO Elon Musk said Indian Prime Minister Narendra Modi was pushing the car maker to make a "significant investment" in the country, adding that such an announcement was expected soon.

In the past, talks between the US carmaker and the Indian government have involved seeking customs duty waivers for importing its electric vehicles, which was rejected by India.

"Any duty waiver for Tesla is not under active consideration of the Department of Revenue, as of now," Malhotra told Reuters on Thursday.

Meanwhile, government sources have confirmed to Business Today TV that billionaire Elon Musk’s iconic company has submitted an initial proposal to establish manufacturing operations in India.

Sources said the company intends to build a gigafactory with an annual capacity to produce about half a million electric vehicles.

Tesla aims to introduce a wide range of electric vehicles and establish a robust charging infrastructure in India on a large scale.

If Tesla's plans go through, Tesla will emerge India's third largest car manufacturer in India after Maruti and Hyundai.

Earlier on Thursday, Economic Times reported that Tesla is looking at an annual capacity of five lakh vehicles and a starting price of Rs 20 lakh.