The Indian government is considering offering concessional duty on components used in electric vehicles manufactured by Tesla, as the US electric carmaker has submitted its plan for setting up a manufacturing unit in the country.
The Ministry of Heavy Industries is looking into the possibility of providing incentives to Tesla for setting up a local manufacturing unit. The government has also offered the company a special economic zone (SEZ) for the plant. The move comes at a time when India is seeking to reduce its dependence on fossil fuels and promote the adoption of electric vehicles.
The incentives proposed include tax holidays on import duties, as well as a waiver on GST and other levies. The government is also considering providing incentives to other electric vehicles manufacturers in the country to boost the industry.