Tesla to invest in India’s initiative to construct battery plants

  • The vital interest comes in the midst of the Indian government’s push to make India a center point for producing EVs and their parts.

  • According to NITI, India will require over 6GW scale facilities by 2025 and 12 by 2030.

American automotive giant Tesla has reportedly expressed its keen interest on investing in the Indian government’s idea to construct large factories to develop lithium-ion batteries at an investment of about ₹50,000 crore.

Apparently, the vital interest comes in the midst of the Indian government’s push to make India a center point for producing EVs and their parts. This is planned for capturing the South Asian nation’s reputation for being the world’s third-biggest unrefined petroleum merchant, saving money on valuable outside trade and furthermore controlling contamination in its significant urban communities.

As per trusted sources, the plan to set up these 50-gigawatt hour (GWh) industrial facilities has been passed by Expenditure Finance Committee, with the last tender expected to be granted by February. Each gigawatt hour (1,000 megawatt hours) of battery limit can control 1 million homes for an hour and around 30,000 electric vehicles. Additionally, the move to build the giga plants is directed by NITI Aayog and looks forward to achieving what Tesla has done at its Gigafactory in the United States.

A source close to the government cited that they have been expecting all cabinet clearances by the end of September this year. The base cap for offering is 5GWh, with the greatest permitted quantum of 20GWh. Moreover, large batteries ought to be brought to clean energy play to help utilize decrepit power.

Reportedly, the Indian finance minister Nirmala Sitharaman in July this year announced in the Union budget tax breaks for building up mega-manufacturing plants for solar photovoltaic cells, lithium-ion storage batteries and solar electric charging infrastructure.

Meanwhile, in order to boost up the trading of electric vehicles in the nation, the GST Council recently decided to reduce taxes on electric vehicles and chargers.

Source credit: https://www.livemint.com/news/india/tesla-shows-interest-in-india-s-plans-to-build-battery-plants-1566150165528.html