Minister rules out tax sops to Tesla

In a clear indication that India will not provide any tax relief to electric vehicles major Tesla unless it sets up a manufacturing facility, minister of state for heavy industries Krishan Pal Gurjar on Tuesday said there cannot be a situation where the market is here but jobs are created in China. The Elon Musk-led company is yet to apply under any scheme offered by the government, Gurjar said in the Lok Sabha.

Responding to a query on Tesla, he said, "The company wants workers from China and market of India. This is not possible in Modi government... Our government's policy is that if Indian market is to be used, job opportunities will have to be given to Indians."

Tesla has sought a reduction in import duties on electric vehicles (EVs) in India but the government has asked the firm to give a commitment on manufacturing for any tax concession or invest under the production-linked incentive (PLI) schemes.