There can’t be a situation where the market is India but there are jobs in China: Govt on Tesla

Minister of State for Heavy Industries Krishna Pal Gurjar told the Lok Sabha during Question Hour that Tesla has not yet applied for schemes as per the government’s policy.

Earlier, CBIC chairman Vivek Johri has said that the current tariff structure for imports is not a deterrent for companies and turned down Elon Musk’s demand for tax breaks for imports of electric cars.

Vivek Johri earlier in an interview said, “We saw if there is a need to re-add the duties, but some domestic production is happening and some investments have come with the existing tariff structure.” “So, it’s clear that this is not a hindrance.”

Last month, Tesla founder and CEO Elon Musk had said that the company is facing several challenges with the government getting ready to launch its products in India.

Prime Minister Narendra Modi’s administration has encouraged Tesla to produce locally, while Musk wants India to reduce taxes – as much as 100% on imported EVs – allowing the company to sell vehicles previously manufactured elsewhere at competitive prices. enables.

Johri said Tesla has not yet introduced plans for local manufacturing and procurement from India, even after the government asked for it, Johri said. The federal budget earlier this week did not mention any tax breaks for cleaner but imported vehicles, even though the western state of Maharashtra – home to the financial capital Mumbai – publicly backed Tesla’s demands.

Politicians in at least five Indian states have invited Tesla to set up shop in their provinces after Musk said last month that the US electric-vehicle pioneer was still facing too many challenges with the federal government. India has asked Tesla to consider importing so-called knock-down units or partially manufactured vehicles, which attract lower import duties, instead of fully manufactured units.

Responding to a question on Tesla, the minister said, “The company wants workers from China and India market. This is not possible in the Modi government… Our government’s policy is that if India’s market is to be used, So job opportunities have to be given to Indians.”

The minister’s reply came in response to a question by Congress member K Suresh on whether the government would invite Tesla to enter the Indian market and steps being taken to promote mass production of electric vehicles in the country.

“Want to ask the member whether they want India’s money to go to China? That company has not applied as per our policy. For that (company), India’s doors are open, they can apply as per the policy Establish a company, employ our people, increase government revenue.”

“In Modi’s government it cannot happen that employment is to China and the market is to India… Modiji’s government’s policy is that if the market belongs to India, the people of India will also get employment… It happens that jobs are in China. Whereas the market is India. The policy of the government is that if the market is India, people should get jobs in India), Gurjar said.

He was responding to a question from another member asking about the government’s position on exemptions that Tesla and some states have expressed interest in for the company’s manufacturing units.

Johri said Tesla should follow domestic companies such as Mahindra & Mahindra Ltd and Tata Motors Ltd, which are investing in local capacity building for electric vehicles. “Some others are importing completely manufactured units. That road is open,” he said.