Karnataka invites Elon Musk to set up Tesla plant
Premium- Several Indian states like Telangana, West Bengal, Maharashtra, Punjab and Tamil Nadu have already invited Elon Musk to set up a Tesla plant.
Karnataka is the latest state to join in wooing Elon Musk to set up shop, with minister for Large and Medium-scale Industries Murugesh R Nirani saying the state has emerged as electric vehicle (EV) hub of India.
"With over 400 R&D centres, 45+ EV startups & an EV cluster near Bengaluru, Karnataka has emerged as EV hub of India. Elon Musk, Karnataka would be an ideal destination to set up Tesla. Bengaluru is already Tesla’s maiden address in India," Nirani said in a tweet.
Several Indian states like Telangana, West Bengal, Maharashtra, Punjab and Tamil Nadu have already invited Musk to set up shop.
All hell broke loose when Telangana's IT and industries minister KT Rama Rao invited Elon Musk to set up Tesla plant in Hyderabad, after the billionaire CEO flagged challenges with the union government.
"Still working through a lot of challenges with the government," Elon Musk had said.
Musk tweeted in reply to a Twitter user, who asked: "Yo @elonmusk any further update as to when Tesla's will launch in India? They're pretty awesome and deserve to be in every corner of the world!" In January 2021, Tesla registered its Indian arm amid indications that the company is set to enter the country's automobile market.
"Hey Elon, I am the Industry & Commerce Minister of Telangana state in India," KT Rama Rao tweeted in response to Musk on Friday. "Our state is a champion in sustainability initiatives & a top notch business destination."
Three other states put their own cases forward over the weekend.
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West Bengal's minority affairs minister said his corner of the country boasted the best infrastructure and "vision".
In Mumbai the development minister touted his state's "progressive" credentials.
And in Punjab, lawmaker and retired international cricketer Navjot Singh Sidhu promised a commitment to green jobs and sustainable development.
According to a regulatory filing, the firm registered Tesla India Motors and Energy Pvt Ltd with RoC (Registrar Of Companies) Bengaluru.
The company has been registered as an unlisted private entity with a paid-up capital of ₹1 lakh.
In February 2021, the then Karnataka Chief Minister B S Yediyurappa too had said that "American firm Tesla will set up the car-manufacturing unit in Karnataka."
Last year, Tesla had sought a reduction in import duties on electric vehicles (EVs) in India. The union heavy industries ministry had asked the electric car major to first start manufacturing its iconic electric vehicles in India before any tax concessions can be considered.
The government sources had noted that they were not giving such concessions to any auto firm, and giving duty benefits to Tesla will not send a good signal to other companies that have invested billions of dollars in India.
At present, cars imported as completely built units (CBUs) attract customs duty, ranging from 60 to 100 per cent, depending on the engine size and cost, insurance and freight (CIF) value less or above USD 40,000.
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