NEW DELHI: The government is hardening its stance against Tesla over the company’s reluctance to start local manufacturing in India even while the US electric car giant canvasses for duty concessions on vehicle imports.
Ruling out any special and specific concessions for the American electric car giant, the ministry of heavy industries on Monday said that notwithstanding Tesla’s reluctance, the broader auto industry’s response to its local manufacturing incentive plans has been “overwhelming”, which would generate fresh revenues of over Rs 2. 3 lakh crore and position India as a strong exports base for green cars.
Arun Goel, the heavy industries secretary, said that investment proposals submitted by companies have already crossed the government’s estimates, even when those committing investments for making components are yet to be announced. “We have received fresh investment proposals beyond the targeted Rs 42,500 crore. The response has been overwhelming and the larger industry has been appreciative of our plan, which explains the robust investment commitment,” Goel said. Asked whether any specific concession can be extended for Tesla, Goel said no incentives benefiting only one individual company can be given. “The concession plan is uniform (for the industry). We are a democracy. ,
The views of the heavy industries ministry come at atime when transport minister Nitin Gadkari has also raised concerns around Tesla’s plans to start India business only through imports, possibly getting in cars from its China factory.
Minister of state for heavy industries Krishan Pal Gurjar had also opposed Tesla’s current India plans, telling the Lok Sabha that the government does not approve of a route which does not involve local manufacturing. “The company (Tesla) wants workers from China and the market of India. This is not possible under the Modi government. , , our government’s policy is that if the Indian market has to be used, job opportunities will also have to be given to Indians. ,
Ruling out any special and specific concessions for the American electric car giant, the ministry of heavy industries on Monday said that notwithstanding Tesla’s reluctance, the broader auto industry’s response to its local manufacturing incentive plans has been “overwhelming”, which would generate fresh revenues of over Rs 2. 3 lakh crore and position India as a strong exports base for green cars.
Arun Goel, the heavy industries secretary, said that investment proposals submitted by companies have already crossed the government’s estimates, even when those committing investments for making components are yet to be announced. “We have received fresh investment proposals beyond the targeted Rs 42,500 crore. The response has been overwhelming and the larger industry has been appreciative of our plan, which explains the robust investment commitment,” Goel said. Asked whether any specific concession can be extended for Tesla, Goel said no incentives benefiting only one individual company can be given. “The concession plan is uniform (for the industry). We are a democracy. ,
The views of the heavy industries ministry come at atime when transport minister Nitin Gadkari has also raised concerns around Tesla’s plans to start India business only through imports, possibly getting in cars from its China factory.
Minister of state for heavy industries Krishan Pal Gurjar had also opposed Tesla’s current India plans, telling the Lok Sabha that the government does not approve of a route which does not involve local manufacturing. “The company (Tesla) wants workers from China and the market of India. This is not possible under the Modi government. , , our government’s policy is that if the Indian market has to be used, job opportunities will also have to be given to Indians. ,
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