Following the green light from the Narendra Modi-led government on a fresh electric vehicle (EV) policy aimed at enticing global manufacturers to invest in the EV domain, Tesla (NASDAQ:TSLA) is reportedly gearing up to scout locations in India for a mammoth $2-3 billion plant. As per a report in The Financial Times, sources revealed that the Elon Musk-led company intends to dispatch a team from the US later this month to assess potential sites for the facility.
The focus of the team's scrutiny will reportedly be on states like Maharashtra, Gujarat, and Tamil Nadu (NS:TNNP), which boast well-established EV infrastructure and strategic ports, facilitating car exports for the company.
Tesla refrained from commenting on the report.
Under the new EV policy, the government has slashed customs duty to 15%, albeit with certain conditions attached, clearing the path for Musk's foray into the Indian market.
Last year, during a meeting with PM Modi in the US, Musk received accolades for his endeavors in democratizing technology across various sectors. The Prime Minister extended an invitation to Musk to explore investment opportunities in India, particularly in the electric mobility and rapidly expanding commercial space segments.
Outlined within the new EV scheme is a stipulation mandating a minimum investment of Rs 4,150 crore (approximately $500 million) for establishing manufacturing facilities, with production slated to commence within three years. Additionally, manufacturers are required to achieve a 25% Domestic Value Addition (DVA) within three years and escalate it to 50% within five years at maximum.
Read also | World Bank Upgrades India's GDP Growth Projection to 7.5% for 2023-24
