Govt offers auto PLI 2.0 to bring Tesla to India
The current outlay for the advanced chemistry cell batteries is Rs 18,100 crore and that for automobiles and auto components is Rs 25,938 crore.
With Tesla proposing a manufacturing plant in India, the government plans to come out with a modified production-linked incentive scheme for electric vehicles and advanced chemistry cell batteries to invite fresh investments by companies that did not participate earlier.
Official sources said that modifying or coming out with a PLI 2.0 will not be a new thing which would be done only to include Tesla in the the scheme, as it has earlier been done for telecom products and IT Hardware PLI schemes. On Wednesday, the new IT Hardware PLI scheme was approved by the Cabinet with the purpose of giving global companies another chance to invest in the country. A similar modification would be done in the auto and battery PLI once everything gets finalised between the government and Tesla, said sources.
The current outlay for the advanced chemistry cell batteries is Rs 18,100 crore and that for automobiles and auto components is Rs 25,938 crore. Sources said in the modified PLI scheme for the two, the outlay may be increased, incentives can also be tweaked, and participating companies would be given the option to migrate to the new one.
“It will be fair to all the parties and PLI schemes offer such flexibility in restructuring the package,” an official said.
Tesla is now considering manufacturing in India and is no longer pressing with its earlier demand for first lowering import duty on completely built units, which is at 100% for cars costing $40,000 and above. The duty on cars costing below this is at 60%. Tesla’s demand had been to slash the duty to 40%. FE
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