Home / Industry / Manufacturing /  Tesla should make cars in India to avail sops: govt

Making it clear that relaxations will not be provided to US-based electric vehicles major Tesla unless it participates in manufacturing activities in India, Union Minister Krishan Pal Gurjar on Tuesday said there cannot be a situation where the market is India but jobs are created in China.

The minister of state for heavy industries also told the Lok Sabha during Question Hour that the company is yet to apply for schemes as per the government’s policy.

Last year, the Elon Musk-led company sought a reduction in import duties on electric vehicles (EVs) in India but the Ministry of Heavy Industries asked the firm to start manufacturing its iconic EVs in the country before any tax concessions can be considered.

Gurjar said the government has Production Linked Incentives for automobile and auto components as well as for manufacturing Advanced Chemistry Cell (ACC) battery. Both schemes are open for domestic as well as foreign entities.

The minister said “the company wants workers from China and market of India. This is not possible in Modi government... our government’s policy is that if India market is to be used, job opportunities will have to be given to Indians."

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