Telangana government is in discussions with Tesla to get the Elon Musk-led electric vehicle major to establish its India plant in the State.
“We have been making all-out efforts to bring Tesla to our State,” Industries and IT Minister D. Sridhar Babu posted on X (formerly Twitter) on Thursday. The Industries Department and other entities of the government are continuing deliberations with the global automotive and clean energy giant Tesla to establish its plant in the State, he announced.
The State government has been keenly following Tesla’s planned investment initiatives in India since December 2023, the Minister said, seeking to highlight the conducive policy measures and quality infrastructure available in Telangana in the post in which he also tagged Mr. Musk. The Congress government in the State came to power in December.
“Telangana with its industry-friendly policy is working with a progressive and futuristic vision by creating a world-class infrastructure and hassle-free approvals system to enable best-in-class companies like Tesla to do business in Telangana,” Mr. Sridhar Babu declared. The Congress Minister’s post was in response to one by his predecessor in the BRS government K.T. Rama Rao requesting “Telangana government to go all out and do your best to bring them to our State. Make sure the Tesla team visits Hyderabad and understands the progressive industrial policies of the Telangana government.” Mr. Rao said this, citing a news report that quoting sources said Tesla is sending teams to India to scout for sites for its $2-3 billion electric car plant.
A senior official in the Industries Department turned down the request for additional information on the efforts to woo Tesla. With many States in the race, even “one bit of information will weaken our case,” he said. For Telangana, bagging Tesla project will be significant in terms of providing impetus to a vibrant electric mobility ecosystem the State has been keen on hosting. In January 2022, when Mr. Musk said his company was working through a lot of challenges with the government in the country, Mr. Rama Rao posted :“Hey Elon, I am the Industry and Commerce Minister of Telangana State in India. 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 and a top-notch business destination in India.”
In recent months, the Centre has enhanced efforts to woo Tesla investments. Last year during his U.S. visit, Prime Minister Narendra Modi had, among other business leaders, met Mr. Musk and invited him to explore opportunities for investments in electric mobility and rapidly expanding commercial space sector in India.
Last month, the Union government announced that firms setting up manufacturing facilities for EVs will be allowed limited imports of cars at lower customs duty. The reduced levy will be subject to conditions, including a minimum investment of ₹4,150 crore ($500 million), starting local manufacturing within three years and achieving 50% domestic value addition within five years.
