Union minister Piyush Goyal has said that the government will not tailor its policies to suit Elon Musk’s Tesla and would instead formulate laws and tariff rules to attract all electric vehicle manufacturers from across the world to set up base in India.
Tesla has been seeking an initial tariff concession so that it can offset 70 per cent customs duty for cars costing less than $40,000 and 100 per cent for cars of higher value.
Goyal, the Union minister for commerce and industry, told PTI that the Narendra Modi government recognises the need for a vibrant EV ecosystem as the greater use of battery-run vehicles will cut carbon emissions and the oil import bill.
“Government does not tailor policy for any one individual company or its interests. Everybody is free to make their demands. But that does not mean that the government will necessarily take a decision (based on) what you demand,” the minister said.
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“We are working on several initiatives where we are having inter-ministerial (consultations) and a dialogue with the stakeholders, with potential investors from across the world from Europe, from the United States, from the Far East, from Japan, from Korea,” he added.
When it happens, the factory in India will be Tesla’s sixth EV plant. Last year, Musk had met Prime Minister Narendra Modi in June. After meeting him, Musk had said he would visit India this year.
“We recognise that India must have a vibrant electric mobility ecosystem. We recognise that it has multifarious benefits to grow towards electric mobility. Not only will it help us in our fight against climate change, it will also improve the environment and lower pollution levels, particularly in cities, which largely suffer because of the ICE (internal combustion engine) or the petrol-diesel fumes that are thrown out,” Goyal said.
“So, it has so many multifarious benefits which will impact not only the country’s environment but will also impact the country’s economy, it will add to our economic output. It will save foreign exchange, reduce our trade deficits, help us in our fight against inflation, thereby helping us in reducing interest rates,” he added.
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