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Tesla to open manufacturing unit in Karnataka, says CM B S Yediyurappa

Last month, Tesla registered its subsidiary Tesla India Motors and Energy Private Ltd at Bengaluru
Last Updated 14 February 2021, 03:45 IST

Chief Minister B S Yediyurappa on Saturday said Elon Musk-owned Tesla will set up its electric car manufacturing unit in Karnataka, in the first clear statement by the government on the American firm zeroing in on the state for its vehicle unit.

“American firm Tesla will open its electric car manufacturing unit in Karnataka,” Yediyurappa said in a statement about the project that had attracted the attention of several other states as well.

Also Read | Long road for Tesla in India with infrastructure, supply chain woes

The reference to Tesla came immediately after the CM said an industrial corridor is coming up at Tumakuru at a cost of Rs 7,725 crore that would generate 2.8 lakh jobs.

Last month, Tesla registered its subsidiary Tesla India Motors and Energy Private Ltd in Bengaluru. Yediyurappa had then tweeted that the electric car giant would open its R&D unit in the state capital. But the tweet was quickly deleted.

Yediyurappa's statement comes days after Maharashtra Industries Minister Subhash Desai claimed that his state had not lost Tesla to Karnataka. Maharashtra, too, is trying to woo Tesla. The company, Desai claimed, had decided to set up only a workshop and a showroom in Karnataka.

The CM also listed out at least nine benefits the state has been promised in the Union Budget.

Yediyurappa, Home Minister Basavaraj Bommai and Housing Minister V Somanna separately lauded the Union Budget, listing out the benefits it had for Karnataka. This, after the administration, is said to have spent the past couple of days reading through the fine print of the Union Budget.

According to Yediyurappa, Karnataka will get Rs 10,904 crore for 33 national highway projects spanning 1,197 km. In north Karnataka, 13 highway projects worth Rs 21,000 crore have been cleared.

Also Read | Can you buy a Tesla with bitcoin? This is how the payments might work

In 2021-22, Yediyurappa said Karnataka will get basic infrastructure updates worth Rs 1.16 lakh crore.

Bengaluru alone has received Rs 14,788 crore for Phase 2 of the Namma Metro project and Rs 23,093 crore for the suburban rail. For other railway projects, the state will get Rs 4,870 crore, he said.

While the Kochi-Mangaluru gas pipeline has been launched, Yediyurappa said the tunnel project at Shiradi Ghat connecting Bengaluru and Mangaluru had been approved. He said Rs 10,000 crore was released for the 13-km tunnel.

“This is a historic budget,” Yediyurappa said. "It will complement farm output increase, creation of infrastructure and improvement of the health sector," he said, adding that the Union Budget would help "comprehensive" development of the country.

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(Published 13 February 2021, 12:43 IST)

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