Heavy competition among states to attract Tesla for electric vehicle manufacturing unit

Tamil Nadu is the fifth state to invite Elon Musk

Indian government rejects Elon Musk's proposal to reduce import duty on electric vehicles

Mumbai: After Telangana, Tesla owner Elon Musk has been invited by the Maharashtra and Punjab governments to set up a manufacturing unit in their state.

West Bengal has also promised to help Musk set up the plant. Tamil Nadu has since become the fifth state to invite Musk to set up a plant there. He also offered Musk a partnership with the government in renewable energy.

Tamil Nadu Minister Thangam Thenarasu said that Tamil Nadu accounts for 34 per cent of the total investment in electric vehicles in the country. Musk has been receiving offers from various state governments following a tweet from the government that it is facing challenges in getting its products flowed into India. Maharashtra is a progressive state of India.

Jayant Patil, a minister of state, told Musk in a tweet that every help would be provided to set up the plant here. On the other hand, Punjab Pradesh Congress chief Navjot Singh Sidhu has also invited Musk to set up a unit at Ludhiana. The West Bengal government has also appealed to Musk to return to his state.

Earlier, Telangana Minister KT Rama Rao invited Tesla CEO Musk to set up an electric vehicle plant in the state. Musk and the Indian government have been in discussions for some time. Tesla made a proposal last year to reduce import duty on electric vehicles in India, which the government has rejected.

The government wants Tesla to manufacture and export electric vehicles in India, while Tesla first seeks to create a market for its vehicles in India and therefore seeks a 100 per cent reduction in import duty on electric vehicles.

Establishing a vehicle manufacturing company in India remains difficult and challenging. From land acquisition to employee rights have been a problem for any company so far. Government support is needed to address these issues.