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Rajasthan in race with Gujarat to woo Tesla

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Not just Gujarat, but Rajasthan too is trying to entice billionaire Elon’ Musk’s Tesla to set up its manufacturing base in the state.

After the US-based electric carmaker started its office in Bengaluru, the Gujarat government has offered its two biggest ports Kandla and Mundra to carry out the manufacturing or assembling work. According to Deendayal Port Trust chairman SK Mehta, Gujarat is ideal for Tesla because the state has proven itself as one of the best industrial states in India, especially for manufacturing auto components.

Rajasthan’s letter to Tesla

Meanwhile, the Rajasthan government’s investment wing, the Rajasthan Industrial Investment Corporation (RIICO) has written a letter to  Vaibhav Taneja, director, Tesla India Motors and Energy Pvt Ltd. The letter written by RIICO’s managing director Ashutosh Pednekar provides that the state’s investment promotion scheme offers “the most attractive incentive scheme” amongst all Indian states. It added that the state will be glad to provide customised solutions to Tesla for its big-ticket investment.

RIICO is currently opening industrial areas across Rajasthan for allotment, spread over 17,250 acres. The letter said the department “will be happy to facilitate the identification of possible locations and in streamlining various further requirements”.

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Rajiv Arora, president of the Federation of Rajasthan Exporters had previously written a letter to Chief Minister Ashok Gehlot to urge Tesla to start its work in the state. According to him, the government must offer an ideal location for the carmaker and a special incentive package to attract it.

Tapukara automobile hub

The Tapukara automobile complex in Bhiwadi in Alwar district currently has the Honda Motors plant. Last month, Tapukara, RIICO’s industrial area which is trying to become north India’s biggest automobile hub had reasons for celebrations. It was because of the decision of Honda to shift its entire manufacturing base from Greater Noida to Tapukara.

Rajasthan is trying to sell Tapukara to TESLA as an ideal location for setting up their plant there because of its proximity to Delhi.

RIICO’s managing director also writes about Alwar district’s locational advantage and Tapukara emerging as an automobile hub.  Rajasthan also has the presence of Honda cars, Honda Motorcycles & Scooters, JCB  Earthmovers, Hero Motorcycles, etc.

But the fact remains that the other states will also offer attractive packages to TESLA. Gujarat has strategically offered TESLA to set up its manufacturing base near its two ports. Any company with exports in its mind would prefer a location near a port to save transportation costs.

 

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