However, Tesla is yet undecided on whether to set up a base in a distant place like Gujarat or in Bengaluru.
New Delhi: With several states vying to get the premium electric vehicle maker to come to their states and set up shop, Gujarat has upped the ante,and according to a report by Indian Express, is offering 1000 hectares to Tesla in Mundra near the coast of Kutch.
According to a government official Tesla is yet undecided on whether to set up a base in a distant place like Gujarat or in Bengaluru. While Bengaluru has a thriving social life, it is not so the case with Gujarat. Also, there is scarcity of trained workers in a far away place like Mundra. But in Gujarat, the land is much cheaper. As of now, the company is negotiating with both the state governments.
Gujarat seems to have offered the carmaker land both inside and outside the Adani ports and special economic zone (APSEZ). The official added that the government has promised the carmaker that land availability will not be an issue. SEZs are also duty free enclaves where customs laws of India are not applicable. The carmaker however, has not decided that the new unit will be purely export only or a mix of both.
Gujarat's administration is trying to make Mundra an EV hub and has therefore proposed that land be allocated to ancillary units following Tesla. In the recent EV policy announced by Gujarat, the state aims at popularising the adoption of EVs and to turn Gujarat into a hub of EV production, encourage startups and bring investors in the field of e-mobility.
However, it is too early to think that Tesla will set up a plant in India, even though the government may have offered land, but it may not be enough to attract the EV giant.
Similar speculations were also made regarding Tesla setting base in Mumbai. P Anbalagan, CEO of Maharashtra Industrial Development Corporation said that the Maharashtra government and Tesla had a meeting a few months ago. Tesla wanted a big charging network near the Mumbai Metropolitan Region and the Jawaharlal Nehru Port Trust where its cars would be after imports. But the state of Maharashtra has not received any confirmation after the meeting held in 2020.
ETAuto had previously reported that the Palo Alto-based electric vehicle manufacturer has registered its Indian entity in the name of Tesla India Motors And Energy Private Limited in Bengaluru Karnataka, according to documents filed in the Ministry of Corporate Affairs (MCA).