At the beginning of the year, a tweet came from Karnataka Chief Minister BS Yediyurappa, in which it was said that a research and development unit would be set up in Karnataka by Tesla.
Tesla India
Tesla has already established its unit in India, headquartered in Bengaluru, Karnataka. It has also decided to set up shops in three different cities of the country – Mumbai, New Delhi and Bengaluru. The electric car maker is currently looking for a place where it can set up the company’s first assembly line. In such a situation, Karnataka, Maharashtra and Gujarat are all willing to welcome the American brand with open arms, with the Gujarat government offering Tesla 1000 acres of land to build its local production facility. The company is currently examining all the available options.
According to a senior Gujarat government official, Tesla has not yet decided whether to choose Gujarat or Karnataka for this. The official said, “Gujarat has little or no social life, while it is not so in Bengaluru. They are trying to negotiate with both the Gujarat and Karnataka governments.” The American EV brand officially made its footing in India on January 8, 2021, when it registered itself as Tesla India Motors & Energy Pvt Ltd in Bengaluru.
Talks are also going on with Maharashtra government
Recently it has been further revealed that the Maharashtra government has also offered to give a piece of land in the state for the purpose of building the company’s local plant. However, talks could not take place since then. It is learned that Tesla executives wanted a large web of charging stations in the Mumbai metropolitan area as well as near the Jawaharlal Nehru Port Trust, the port where cars would land after importation. Tesla has partnered with 27 vendors in India, of which 20 are said to be from Maharashtra.
According to the Indian Express report, since its last conversation in 2020, Tesla has not responded to the Maharashtra government. Earlier, the Chief Minister of Karnataka had announced that the carmaker would set up its factory and R&D facility in his state soon after getting registered with the Registrar of Companies with the address at Bengaluru. However, the Karnataka CM later deleted the tweet which contained this information.
Plant may be in Gujarat
Meanwhile, Gujarat has offered land both inside and outside the Adani Ports and Special Economic Zone (APSEZ) in Mundra. The area of the APSEZ is 8,400 hectares, of which about half is lying vacant. SEZs are designated duty-free enclaves where Indian customs law does not apply. What is in Gujarat’s favor is its new EV policy introduced a few days back, which not only provides subsidy on the purchase of EVs, but also provides for the installation of the required charging infrastructure.
Reportedly, the Gujarat government is looking to build an electric vehicle hub in Mundra and hence has also proposed to allot land for ancillary units that will assist Tesla. This will include land for EV battery manufacturing manufacturing as well as other component manufacturers.
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