The government is yet to consider formulating a separate policy to provide incentives to US-based electric car maker Tesla, and the company can apply to avail support measures under existing schemes like PLI for auto and advanced chemistry cells, a government official has said.
The government has already launched Production-Linked Incentive Schemes (PLI) for Advanced Chemistry Cell (ACC) Battery Storage with an outlay of Rs 18,100 crore and PLI scheme of Rs 26,058 crore for auto, auto-components and drone industries.
“We have told Tesla that policies which are already in place for all may be applicable under that PLI as well. They are welcome. Generally policy will be same for all. Government will not like to have different policies for same company. There is no plan to give special treatment as of now,” the official said.
“Representatives from Panasonic, the biggest supplier of Tesla’s batteries, have met us and they have said they want to make batteries,” the official said. We have suggested them to apply under PLI ACC Battery.
The government last week announced re-bidding of production linked incentives for 20 GWh advanced chemical cell manufacturing.
The Ministry of Heavy Industry is conducting a stakeholder consultation with industry representatives on 24 July for their inputs and suggestions before the re-bidding process for the remaining 20 GWh capacity begins.
Tesla representatives visited the country last month to meet officials from various ministries, including the Ministry of Commerce and Industry.
In 2021, the US-based electric carmaker sought a cut in import duty on electric vehicles (EVs) in India.
Currently, cars imported as completely built units (CBUs) attract customs duty of 60 per cent to 100 per cent depending on the engine size and cost, insurance and freight (CIF) value of less than or more than USD 40,000.
Elon Musk, chief of the world’s largest electric carmaker Tesla Inc, met Prime Minister Narendra Modi in New York last month.
After meeting the Prime Minister, Musk said that he plans to visit India in 2024.
Musk had said after that meeting, “I am confident that Tesla will be in India, and we will do that as soon as humanly possible.”
Musk had said, “We don’t want to rush an announcement, but I think it’s very likely that this will be a significant investment, a relationship with India.”
India, the world’s third-biggest energy consumer, is working as an alternative destination for investment for US companies to take advantage of the growing chill between Beijing and Washington.
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