Govt offers Tesla bigger sops than China for local production
The government is ready to offer bigger incentives than China to Tesla Inc if the car maker commits to making electric cars in the country, according to Union Road Transport, Highways and Shipping Minister Nitin Gadkari .
Gadkari told a news agency that concessions would be lower if the entire product is made in India by hiring local vendors and would make sure that production cost for the car maker is lowest when compared to the world.
US-based electric car giant Tesla would set up its manufacturing unit in Karnataka, Chief Minister of the state B S Yediyurappa had said last month.
According to a regulatory filing in January, the US fir m has registered Tesla India Motors and Energy Pvt Ltd with RoC Bengaluru.
The company was registered as an unlisted private entity with a paid up capital of Rs 1 lakh.
Vaibhav Taneja, Venkatrangam Sreeram and David Jon Feinstein have been appointed as directors of Tesla India, as per the Registrar of Companies (RoC) filing.
In December, Union Minister Nitin Gadkari had said Tesla is set to start its operations in the country in 2021 and would also look at setting up a manufacturing unit based on demand.
On Tuesday Gadkari asked automakers to build flex-engine vehicles for using alter native fuel.
Gadkari, talking to a delegation of car makers from the Society of India Automobile Manufacturers (SIAM), stressed the need for indigenous technology for flex-fuel vehicles.
"Gadkari has urged car manufacturers to give priority to the indigenous production of flex engines, which can be used in vehicles using alter native fuels such as ethanol," a statement said.
The minister said that with ethanol beginning to be easily available in the country and over 70 per cent of gasoline consumption being done by twowheelers, there is a need to develop indigenous technology for flex fuel vehicles.
"Discussions were also held regarding the request by SIAM to postpone implementation of BS-VI CAFÉ Phase-II regulations to April 1, 2024, on the grounds that the industry is still recovering from the impact of COVID-19,” it said.