Navjot Singh Sidhu invites Elon Musk to invest in Punjab

Sidhu invited Musk to set up Tesla's base in Punjab, saying the state will create Ludhiana as a hub for electric vehicles and battery industry.

There seems to be no dearth of offers for Tesla CEO Elon Musk as Indian states are competing with each other on Twitter to invite the manufacturer of electric vehicles to set up base. Navjot Singh Sidhu, the president of Punjab Congress, is the latest one to invite the company to his state.

In a tweet, Sidhu invited Musk to set up Tesla's base in Punjab, saying the state will create Ludhiana as a hub for electric vehicles and battery industry with time bound single window clearance for investment.

Sidhu's reply came in response to a tweet by Musk earlier this week in which he said Tesla was dealing with "a lot of challenges" with the government. Musk was responding to a user named Pranay Pathole who asked him about the company's car launch in India.

Following this, ministers from different states took to Twitter to ask Musk to invest in their state. Telangana's Industry and Commerce Minister KT Rama Rao was the first one to invite Tesla to invest in the state. "Will be happy to partner Tesla in working through the challenges to set shop in India/Telangana," he wrote.

West Bengal's Minority Affairs and Madrasah Education Minister Md. Ghulam Rabbani asked Musk to invest in his state as it has the "best" infrastructure.

Earlier today, Maharashtra State Water Resources Minister and State NCP chief Jayant Patil invited the company to establish its manufacturing plant in the state. "We will provide you all the necessary help from Maharashtra for you to get established in India," he wrote.

However, the Union government has rejected Musk's claims on the "challenges" he is facing in the country. Earlier this week, sources told Business Today that Musk is trying to put pressure on the government through social media and Tesla wants the country to reduce import duties on its cars without committing to produce in the country.

Tesla has been looking to enter the Indian market and has sought relaxation in import taxes. Earlier, in a letter to the road ministry, the company had stated that the effective import tariff of 110 per cent on vehicles with customs value above $40,000 is "prohibitive" for zero-emission vehicles.

Tesla had requested the government to standardise the tariff on electric cars to 40 per cent, irrespective of the customs value, and withdraw the social welfare surcharge of 10 per cent on electric cars. These changes, it said, would boost the development of the Indian electric vehicle ecosystem.

Tesla had also said that it will make significant direct investments in sales, service and charging infrastructure and significantly increase procurement from India for its global operations.