No special policy for Tesla; can avail incentives under existing schemes: Official

The government is not looking to frame a separate policy for giving incentives to Tesla, which can apply to avail support measures under the existing schemes such as the Production Linked Incentive (PLI) for auto and advanced chemistry cells, according to a government official.

The PLI scheme has already been rolled out by the government for advanced chemistry cell (ACC) battery storage which has an outlay of Rs 18,100 crore and Rs 26,058 crore PLI scheme for auto, auto-components and drone industries.

The official said, "We have told Tesla that the policies, which are already there for all, they 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."

Battery manufacturing 

"Representatives of the US-based electric car maker's biggest supplier of batteries Panasonic met us and they have stated that they want to make batteries. We have suggested them to apply under PLI ACC batteries", added the official.

The re-bidding of production-linked incentives for 20 GWh advanced chemistry cell manufacturing was announced by the government last week. A stakeholder consultation with industry representatives is being held by the Ministry of Heavy Industries on July 24. It will be up for their input and suggestions before starting the re-bidding process of the remaining 20 GWh capacity.

Tesla representatives visited the country last month to meet officials of several ministries, including the Commerce and Industry Ministry.

Tesla seeking reduced EV import duties in India

In 2021, the US-based electric car maker demanded a reduction in import duties on electric vehicles (EVs) in India.

At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60 per cent to 100 per cent, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000. 

Tesla's chief Elon Musk met Prime Minister Narendra Modi last month in New York.

Musk, after meeting the Prime Minister, said he plans to visit India in 2024.

"I am confident that Tesla will be in India, and we will do so as soon as humanly possible," Musk had said after that meeting. 

"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 had said.

India, the world's third-largest energy consumer, is pitching as an alternate destination for investment for US companies to capitalise on the growing chill between Beijing and Washington. 

(With PTI inputs)