Elon Musk’s Tesla Eligible for National Incentives
Elon Musk’s Tesla can apply for incentives under the National Programme on Advanced Chemistry Cells (ACC) Battery Storage, Minister of State for Heavy Industries, Krishnan Pal Gurjar informed the Rajya Sabha on Friday. He was responding to a question on whether a separate policy for providing incentives to Tesla is being formed.
BYD Hong Kong’s Proposal to Set Up Plants Pending Approval
While answering another question, Gurjar said that the Heavy Industries Ministry has received a proposal from BYD Hong Kong Co. Limited, Hong Kong, a wholly owned subsidiary of BYD Company Limited, China. This is the only proposal from a foreign automobile manufacturer, under the Government route, to set up new plants in India which is pending with his ministry.
FDI in the Indian Automobile Sector
He said that foreign direct investment (FDI) in the automobile sector is permissible through the automatic route, except in respect of entities of border sharing nations. These entities are required to invest only under the Government route.
No Separate Policy for Tesla But Eligible for PLI Scheme
Gurjar said that while no separate policy for Tesla is being made, “under Production Linked Incentive (PLI) scheme, a request for proposal (RFP) has been released for 10 GWh on January 24, 2024, in which any interested bidder including US-based Tesla can apply.”
PLI Support for ACC Battery Manufacturing
In 2022, the Centre had awarded PLI support for setting up 30 GWh of ACC battery manufacturing capacity by 2030. Ola Cell Technologies won the lion’s share with 20 GWh capacity in their kitty. ACC Energy Storage (bid as Rajesh Exports) and Reliance New Energy Battery Storage were awarded incentives for 5 GWh each. The government expects PLI incentives to help these three players set up GWh of battery manufacturing capacity.
Rebidding for 10 GWh PLI Capacity
The 10 GWh PLI capacity being rebid is part of 20 GW which was initially allocated to Hyundai Global Motors, a company said to be impersonating South Korean firm Hyundai Motor Company.
PLI Schemes for Advanced Automotive Technologies and ACC Batteries
Gurjar said that two PLI schemes are being implemented by the Heavy Industries Ministry for the promotion of Advanced Automotive Technology (AAT) Products, including electric cars and Advanced Chemistry Cell (ACC) Batteries, with an aim to enhance India’s manufacturing capabilities.
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