The Union finance ministry is not looking at any proposals for a Customs duty waiver for electric vehicle (EV) maker Tesla, Revenue Secretary Sanjay Malhotra told Business Today. “It is not under consideration as of now,” he said.
Government sources indicated that talks are still on between Tesla and the government on its proposed investments. The government may consider any requirements of the vehicle maker that could support domestic manufacturing by the carmaker.
The Ministry of Commerce and Industry is understood to be leading talks with the carmaker.
In discussions with officials from Tesla in May, the government had asked them to provide a more concrete proposal for setting up a manufacturing plant in India and had also asked the company to look at setting up a local vendor base as part of efforts to promote domestic manufacturing.
However, high import duties have been a discussion point between Tesla and India. The car maker was earlier seeking a significant reduction in the import duty on completely built car units, which is currently at 100%.
Elon Musk’s Tesla is in discussions with the Indian government to set up a local factory with an annual capacity of as much as 500,000 cars, which may be priced at Rs 20 lakh, according to reports.
Musk met Prime Minister Narendra Modi during the latter’s recent trip to the US. “He really cares about India because he’s pushing us to make significant investments in India, which is something we intend to do. We are just trying to figure out the right timing,” Musk had told reporters after his meeting with the PM in June.
Tesla has a significant presence in China but many companies are looking to diversify their production base. India has also been keen on attracting Tesla to set up a plant in the country as part of its Make in India efforts.
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Also read: India's finance ministry rejects duty waivers for Tesla, investment talks continue