In a latest development, a government official revealed that they are not looking to frame a separate policy for providing incentives to US-based electric car maker Tesla.
Further adding that the company can apply to avail support measures under existing schemes like PLI for auto and advanced chemistry cells.
PLI For Auto and Advanced Chemistry Cells
As we already know that center has rolled out the production-linked incentives schemes (PLI) for advanced chemistry cell (ACC) battery storage with an outlay of Rs 18,100 crore and Rs 26,058 crore PLI scheme for auto, auto-components and drone industries.
According to the official, “We have told Tesla that the policies, which are already there for all, can also apply under that PLI. They are welcome. Generally, the policy will be the same for all. For a single company, the government may not like to make separate policies. So far, there is no plan to give special treatment.”
Adding, “Representatives of Tesla’s biggest supplier of batteries Panasonic have met us and they have stated that they want to make batteries. We have suggested them to apply under PLI ACC batteries.”
Earlier, the government announced the re-bidding of production-linked incentives for 20 GWh advanced chemistry cell manufacturing last week.
Stakeholder Consultation With Industry Representatives
Concerning the same, the Ministry of Heavy Industries is holding a stakeholder consultation with industry representatives on July 24.
During this meeting, they will ask their inputs and suggestions before the start of the re-bidding process of the remaining 20 GWh capacity.
Prior to this, the representatives of Tesla visited the country last month to meet officials of various ministries, including the Commerce and Industry Ministry.
The US-based electric car maker demanded a reduction in import duties on electric vehicles (EVs) in India during 2021.
The cars are imported as completely built units (CBUs) presently, it attracts customs duty ranging from 60 percent to 100 percent, depending on engine size and cost, insurance and freight (CIF) value less or above $40,000.
Last month, the world’s largest electric car producer Tesla Inc’s chief Elon Musk met Prime Minister Narendra Modi in New York.
After this meeting with the Prime Minister, Musk said that he plans to visit India in 2024.
Adding, “I am confident that Tesla will be in India, and we will do so as soon as humanly possible.”
“We don’t want to jump the gun on an announcement, but I think it’s quite likely that it will be a significant investment, a relationship with India,” Musk said.
