Govt on Tesla: Can’t have a situation where market is India but jobs are in China
On Tuesday the Centre questioned electric car company Tesla‘s business practices, of seeking tax breaks to use the Indian market to sell its products and at the same time not wanting to set up manufacturing facilities in the country which can generate thousands of jobs.
The government has clearly stated that no relaxations will be given to US-based electric vehicles major unless it participates in manufacturing activities in India.
Last year, the Elon Musk-led company sought a reduction in import duties on electric vehicles (EVs) in India but the Ministry of Heavy Industries asked the firm to start manufacturing its iconic EVs in the country before any tax concessions can be considered.
Responding to a question by Shiv Sena member Vinayak Bhaurao Raut, the Minister of State for Heavy Industries Krishna Pal Gujjar told the Lok Sabha “We can’t grant subsidies or relaxation in taxes to the said company as they don’t want to set-up their manufacturing and other operation bases here. Why should we favour a company which creates jobs in China and mints profit from our markets? Our Prime Minister has a vision for all such foreign companies, if you want to sell your product in our country, then manufacture them here only.”
Raut had asked what kind of relaxation in taxes is the government is planning to grant the electric car giant so that they can start their manufacturing in various states here as announced.
The Minister informed the House that Tesla hasn’t shown any interest in any of the government’s schemes for electric vehicles. “The said company has not participated in any of our schemes, and that cleared their intentions that Tesla only wants to exploit our market to mint profit, but will refrain from setting up manufacturing units here. If they manufacture their electric cars in China, thousands of jobs will be created there, not for Indian youths here,” he said.
As per the Ministry of Heavy Industries, the government has formulated a scheme, Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015 to promote the adoption of electric/ hybrid vehicles (EVs) in the country with an aim to reduce dependency on fossil fuels.
At present, Phase-II of the FAME India Scheme is being implemented for a period of 5 years with effect from April 12, 019 with total budgetary support of Rs.10,000 crore.
Also, GST on electric vehicles has been reduced from 12 percent to 5 percent, and on chargers/ charging stations for electric vehicles from 18 percent to 5 percent.
[With Inputs from IANS]
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