Last year, Tesla Motors had sought a reduction in import duties in order to release its electric cars in India. In response, the heavy industries ministry had asked Tesla to first start manufacturing in India before any tax concessions could be considered. Elon Musk and the Modi government have been in talks for years, but disagreements over local manufacturing and import duties have led to an impasse, meaning Tesla still doesn’t sell cars in India, three years after showing definite intent. This is despite Tesla India Motors and Energy, the Indian subsidiary of Tesla Inc., receiving received approvals for seven of its electric vehicle variants for being roadworthy. While Prime Minister Narendra Modi wants Tesla to set up a factory to sell locally and export, Musk has insisted on slashing import duties of as much as 100 per cent so that Tesla can first establish a market. It has offered to outsource some components till then. The company says it wants a cheaper price tag on its cars which is not possible due to the steep import duties. The impasse has now prompted at least four state leaders to make a pitch for the project. It all began when a Twitter user asked Musk when Tesla's “pretty awesome” electric cars would be made available in India. In response, the US billionaire said he was “still working through a lot of challenges with the government.” The four leaders vying with each other to invite Tesla to set manufacturing plant in their states are led by K.T. Rama Rao, Telangana industry and commerce minister and son of the chief minister, who invited the CEO of Tesla to set up shop in his state. He wrote, “Hey Elon, I am the Industry & Commerce Minister of Telangana state in India. I will be happy to partner with Tesla in working through the challenges to set shop in India/Telangana. Our state is a champion in sustainability initiatives & a top-notch business destination in India.” Telangana already has an electric vehicle policy, a 200 acre EV park SEZ and recently USA EV major 'Triton' announced an investment of Rs2,100 crore in the state. Immediately, a clutch of other state leaders piped up to offer their states as a possible new home for the American electric car company. So far, leaders from Punjab, Maharashtra and West Bengal have made offers. Navjot Singh Sidhu, president, Punjab Congress Committee, who has been talking of a Punjab model of growth, invited Tesla Motors to set up his company's base in India in Punjab's Ludhiana. “Ludhiana will be made into a hub for electric vehicles with a time-bound single window clearance for investment in order to bring new technology to Punjab and create green jobs with the goal of sustainable development,” he said. Mohammad Ghulam Rabbani, West Bengal's minister for minority development and madrasa education, tweeted at Elon Musk, "Drop here, we in West Bengal have best infrastructure and our leader Mamata Banerjee has got the vision. Bengal means Business."
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Many states are wooing Tesla chief Elon Musk to set up shop in their states
