No duty cut for Tesla without manufacturing activity – Times of India
NEW DELHI: Requests by Elon Musk for an import duty reduction on electric cars in India seems to be up against a brick wall. No relaxations will be given to US-based electric vehicles major unless it participates in manufacturing activities in India, minister of state for heavy industries, Krishan Pal Gurjar, told the Lok Sabha on Tuesday.
He was responding to questions from Congress’s K Suresh and BSP’s Malook Nagar on whether the government would extend tax sops to Tesla for manufacturing electric vehicles in the country. Gurjar said there cannot be a situation where the market for sales is India but jobs are created in China. He also clarified that Tesla has not applied for sops under any of the existing schemes to promote electric vehicles in the country.
The government, he added, has a production-linked incentive (PLI) scheme 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 company wants workers from China and the market of India. This is not possible under the Modi government. . . our government’s policy is that if the Indian market has to be used, job opportunities will also have to be given to Indians. ”
“I want to ask whether India’s money should go to China? That company has not applied as per our policy. For that (company), doors of India are open, they can come, apply as per policy, set up company, give jobs to our people, increase government revenues,” the minister said.
Last month, Tesla founder and CEO Musk said the company is working through a lot of challenges with the government to launch its products in India.
He was responding to questions from Congress’s K Suresh and BSP’s Malook Nagar on whether the government would extend tax sops to Tesla for manufacturing electric vehicles in the country. Gurjar said there cannot be a situation where the market for sales is India but jobs are created in China. He also clarified that Tesla has not applied for sops under any of the existing schemes to promote electric vehicles in the country.
The government, he added, has a production-linked incentive (PLI) scheme 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 company wants workers from China and the market of India. This is not possible under the Modi government. . . our government’s policy is that if the Indian market has to be used, job opportunities will also have to be given to Indians. ”
“I want to ask whether India’s money should go to China? That company has not applied as per our policy. For that (company), doors of India are open, they can come, apply as per policy, set up company, give jobs to our people, increase government revenues,” the minister said.
Last month, Tesla founder and CEO Musk said the company is working through a lot of challenges with the government to launch its products in India.
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