Gujarat looks to woo Tesla, offers 1,000 acres land to set up manufacturing unit: Report

In a bid to woo Elon Musk's Tesla, the Gujarat government has offered 1,000 acres of land free of cost to set up its manufacturing unit in the western state, according to an Indian Express report.

Tesla had, on January 8, set up its India office in Bengaluru as Tesla India Motors and Energy Private Limited with the Registrar of Companies. A month later, Karnataka Chief Minister B S Yediyurappa said that the electric carmaker would set up its manufacturing unit in the southern state.

The manufacturing unit was expected to create 2.8 lakh jobs and would be set up at an industrial unit in Tumakuru, Yediyurappa had said.

However, a senior Gujarat government official told the publication that Tesla was "undecided" on whether to come to a "faraway" place like Gujarat, with little to no social life, or "dig deep" in Bengaluru, where it is the exact opposite. He added that the American firm was "negotiating" with governments of both states.

According to the report, the Gujarat government was willing to offer land in and/or outside Adani Ports and Special Economic Zone (APSEZ) in Mundra.

Tesla, the official told IE, was assured that land would not be an issue with 4,200 hectares vacant. But Tesla was undecided on whether their India unit would be limited to just exports.

The report cited sources saying that inviting Tesla to set up its unit in Mundra is a larger part of making the coastal town an electric vehicle hub that would also include ancillaries like battery manufacturing units and the like.

While land is cheaper in Gujarat than in Karnataka, the dearth of labour — skilled or unskilled — is a deterrent. The Gujarat government's plans to woo Tesla also fit in line with its recent Gujarat Electric Vehicle Policy 2021 that incentivises and offers subsidies of up to Rs 1.5 lakh on purchase of electric vehicles.