US car giant Tesla to set up manufacturing unit in Karnataka

US-based electric car giant Tesla would set up its manufacturing unit in Karnataka, Chief Minister BS Yediyurappa said on Saturday.

"American firm Tesla will set up a car-manufacturing unit in Karnataka," the Chief Minister said.

In 2021-22, infrastructure development at a cost of Rs 1.16 crore would take place in the state and Rs 14,788 crore would be released for the second phase of the Metro Rail work.

The Chief Minister said an industrial corridor would be developed in Tumakuru at an investment of Rs 7,725 crore creating 2.8 lakh jobs. Hailing the Union Budget presented recently as historic, Yediyurappa said it would pave the way for a $5 trillion economy by 2025.

In January, billionaire Elon Musk's company set up a subsidiary named Tesla India Motors and Energy Pvt. Ltd in Bengaluru. It registered an office at Lavelle Road, a business district in Bengaluru, with a paid-up capital of Rs 1 lakh and an authorised capital of Rs 15 lakh, a Registrar of Companies (RoC) filing showed. The filing mentioned the Indian unit has three directors, including David Feinstein, who is currently a senior executive at Tesla, according to his LinkedIn profile.

Elon Musk, Founder and CEO of the Cupertino-based Tesla, earlier said the US electric carmaker would make a foray into India in 2021.“Next year for sure," Musk said on Twitter in reply to a post with a photograph of a T-shirt with the message: “India wants Tesla" in October 2020. “Thanks for waiting," Musk said.

Meanwhle, while announcing the first-ever paperless budget, Finance Minister highlighted "our manufacturing sector has to grow in double digits on a sustained basis" to achieve the vision of becoming a $5 trillion economy by 2025. She also announced the government's commitment of Rs 1.97 lakh crore under the production-linked incentive (PLI) scheme.