Govt Not Considering Tax Waivers For Tesla, Says Revenue Secretary

Tesla CEO Elon Musk, last month after meeting with Prime Minister Narendra Modi, expressed his confidence in bringing Tesla to the country soon with a "substantial investment"

On Thursday, it was reported that the EV maker has begun discussions with the government for an investment proposal to set up a car factory in the country.

Source : Getty

A finance ministry top official has said that the government is not considering any duty waivers for US automaker Tesla amid reports about the EV maker planning to enter the Indian market. Revenue Secretary Sanjay Malhotra told Reuters on Thursday that any duty waiver for Tesla is not under active consideration by the Department of Revenue. 

Tesla CEO Elon Musk last month met with Prime Minister Narendra Modi on his State Visit to the US. Elon Musk, the CEO of Tesla had expressed his confidence in bringing Tesla to the country soon. He described his conversation with Prime Minister Modi as excellent and mentioned the likelihood of a significant investment in India.

"I am planning to visit India next year. I am confident that Tesla will establish a presence in India as soon as possible. I would like to express my gratitude to PM Modi for his support, and hopefully, we will be able to make an announcement in the future. There is a high probability of substantial investment in India. It was a productive conversation with the Prime Minister," Musk stated.

On Thursday, the Times of India had reported that the EV maker has begun discussions with the government for an investment proposal to set up a car factory in the country, with an annual capacity of as many as 500,000 electric vehicles. As per the report, the price range of these EVs will start from Rs 20, Lakh ($24,400.66). 

The report citing government sources also said that the Elon Musk-led company is looking at using India as an export base as it plans to ship cars to countries in the Indo-Pacific region. 

Tesla executives also held talks with senior Indian officials and ministers in May this year on establishing a manufacturing base for cars and batteries in India. The world's largest electric car maker shelved its India entry plans because of high import tax structures.