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Tesla in India: These states invite Elon Musk to set up EV manufacturing plants in India

Elon Musk has continued to receive splashy offers from Indian states to set up manufacturing plant in India (AFP)Premium
Elon Musk has continued to receive splashy offers from Indian states to set up manufacturing plant in India (AFP)

  • Elon Musk has been periodically tweeting, seeking a cut in import duty so that his company's high-performance electric cars can begin to sell in India
  • Tesla had requested the Union government to withdraw the social welfare surcharge of 10% on electric cars

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Elon Musk has continued to receive splashy offers from a couple of Indian state governments after he put out a tweet suggesting challenges in getting clearance in India for Tesla electric cars. Last week on Thursday (Jan 13), Elon Musk had tweeted that he was still working through a lot of challenges with the government for setting up manufacturing units for his Tesla electric cars in India. "Still working through a lot of challenges with the government," the billionaire wrote in a post giving an update to a query on Twitter asking for an update on Tesla's India business plan.

At least four senior ministers from Telangana, Maharashtra, Punjab, and West Bengal have extended invitations to Musk to set up the Tesla manufacturing plant in their states.

Telangana Industry and Commerce Minister KT Rama Rao was the first to invite Musk after Tesla CEO put out that tweet. Telangana's Industry and Commerce Minister KT Rama Rao wrote, "Will be happy to partner Tesla in working through the challenges to set shop in India/Telangana. Our state is a champion in sustainability initiatives & a top-notch business destination in India".

Later, Maharashtra State Water Resources Minister and State NCP chief, Jayant Patil also invited Elon Musk to establish Tesla's manufacturing plant in the central state.

"Maharashtra is one of the most progressive states in India. We will provide you with all the necessary help from Maharashtra for you to get established in India. We invite you to establish your manufacturing plant in Maharashtra," Patil wrote.

Punjab Congress Chief Navjot Singh Sidhu also struck a similar chord. Replying to Musk's tweet, Sidhu wrote, "Punjab Model will create Ludhiana as a hub for Electric Vehicles and Battery industry with time-bound single window clearance for investment that brings new technology to Punjab, create green jobs, walking path of environment preservation and sustainable development".

West Bengal is the latest in the list as minister Md Ghulam Rabbani on Sunday took to Twitter, inviting Musk to “drop here" and set up his business in the state.

The 58-year-old billionaire has been periodically tweeting, seeking a cut in import duty so that his company's high-performance electric cars can begin to sell in India.

However, the Union heavy industries ministry had asked the electric car major to first start manufacturing EVs in India before tax concessions could be considered. Tesla had requested the Union government to standardise the tariff on electric cars to 40%, irrespective of Customs value, and withdraw the social welfare surcharge of 10% on such vehicles, according to the PTI news agency.

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