- ByStartupStory | April 6, 2024
The Telangana government has intensified its efforts to attract the attention of Tesla, the renowned electric vehicle manufacturer led by entrepreneur Elon Musk, to establish its manufacturing plant in the state. Industries and IT Minister D. Sridhar Babu took to X (formerly Twitter) to express the government’s earnest endeavors in this regard.
“We have been making all-out efforts to bring Tesla to our State,” Minister Babu declared in his social media post on Thursday. He further elaborated that discussions between the Industries Department and other relevant entities of the government with Tesla are ongoing, with the aim of persuading the company to set up its plant in Telangana.
Since December 2023, the Telangana government has been closely monitoring Tesla’s proposed investment plans in India, as emphasized by Minister Babu. He underscored the state’s conducive policy measures and high-quality infrastructure, indicating Telangana’s readiness to host Tesla’s operations.
“Telangana, with its industry-friendly policy, is working with a progressive and futuristic vision by creating a world-class infrastructure and hassle-free approvals system to enable best-in-class companies like Tesla to do business in Telangana,” Minister Sridhar Babu emphasized.
This initiative by the Telangana government has received backing from K.T. Rama Rao, the predecessor of Minister Babu in the former BRS government. Rao urged the government to go all out in its efforts to bring Tesla to the state, citing reports suggesting Tesla’s interest in scouting sites for its potential $2-3 billion electric car plant.
However, the government remains discreet about the specifics of its negotiations with Tesla. A senior official from the Industries Department declined to provide additional information, emphasizing the importance of maintaining confidentiality to strengthen Telangana’s case amidst stiff competition from other states.
Securing the Tesla project would be a significant milestone for Telangana, particularly in bolstering its electric mobility ecosystem. The state has been actively seeking opportunities to foster sustainable initiatives and position itself as a premier business destination in India.
This endeavor aligns with Prime Minister Narendra Modi’s push to attract Tesla’s investments, as evidenced by his meeting with Elon Musk during his U.S. visit last year. The Union government has also announced measures to incentivize firms establishing manufacturing facilities for electric vehicles, including lower customs duties on imported cars under certain conditions.
