Gujarat govt 'hopeful' of Tesla setting up its first India manufacturing plant in state

Ahmedabad: The Gujarat government announced on Thursday that it is "hopeful" Elon Musk will establish Tesla's manufacturing plant in the state, marking the electric vehicle (EV) automaker's first plant in India. The government hinted that an announcement in this regard is likely to be made at the upcoming "Vibrant Gujarat" summit.

"Government is hopeful about Tesla. Elon Musk ji has made up his mind to set up his first plant in Gujarat. He surveyed the country for land, and it seems that Gujarat is on his mind. Perhaps an announcement in this regard will be made soon (sic)," health minister and state government's spokesperson Rushikesh Patel told reporters in Gandhinagar on Thursday.

A decision in this regard is likely to be announced during the "Vibrant Gujarat" summit slated to be held in Gandhinagar between January 10 and 12. State government officials are hopeful that Elon Musk is likely to be attend the summit to announce setting up Tesla's first manufacturing unit in the country.

The state government has been negotiating with the Tesla CEO for several months. The government claims that due to the "favourable business environment," several auto majors have preferred Gujarat, including Maruti Suzuki, Tata, and Morris Garage. Ford and General Motors shut off their manufacturing operations in recent years, which have been taken over by Tata and MG, respectively.

For the past several months, the state government has been campaigning to attract investors for the tenth edition of the summit, where a host of national and multinational companies are expected to announce investments. In a press release issued on Wednesday, the government claimed to have signed more than 30 memoranda of understanding (MoUs) worth Rs 24,707 crore with various companies.

Liquor law relaxations at tourist destinations?

In order to create a "global business ecosystem" for "investors, technical experts, national and international firms," the state government last week announced easing liquor prohibition law in Gujarat International Finance Tec-City or GIFT City in Gandhinagar, applicable for employees and visitors.

On Thursday, government spokesperson Rushikesh Patel told reporters that, in order to create a business-friendly atmosphere and contribute to the betterment of Gujarat and its people, the government may consider relaxing liquor laws at major tourist attractions such as Dhordo (White Rann), Saputara, or Statue of Unity.

Patel made these comments while responding to questions in Gandhinagar about whether the government is considering lifting the liquor ban to promote tourism or not.