Lok Sabha Question No. 3882 (UNSTARRED), answered on 2016-08-09
Subject: Joint Venture Agreement between Tesla and Indian Automobile Companies
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: VINAYAK BHAURAO RAUT, ADVOCATE NARENDRA KESHAV SAWAIKAR, BIDYUT BARAN MAHATO, VIJAYSINH MOHITE PATIL, SUDHEER GUPTA, ASHOK SHANKARRAO CHAVAN, Shrirang Appa Barne, HEENA VIJAYKUMAR GAVIT, SUNIL BALIRAM GAIKWAD, DHANANJAY BHIMRAO MAHADIK, SHIVAJI ADHALRAO PATIL, GAJANAN CHANDRAKANT KIRTIKAR, T. RADHAKRISHNAN, ANANDRAO  ADSUL, SHRIKANT EKNATH SHINDE, JAYAKUMAR JAYAVARDHAN

## GOVERNMENT OF INDIA

## MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES

## DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION NO.3882

## TO BE ANSWERED ON 09.08.2016

## Joint Venture Agreement between Tesla and Indian Automobile Companies

3882.   SHRI VINAYAK BHAURAO RAUT:

ADV. NARENDRA KESHAV SAWAIKAR:

SHRI BIDYUT BARAN MAHATO:

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

SHRI SUDHEER GUPTA:

SHRI ASHOK SHANKARRAO CHAVAN:

SHRI SHRIRANG APPA BARNE:

DR. HEENA VIJAYKUMAR GAVIT:

DR. SUNIL BALIRAM GAIKWAD:

SHRI DHANANJAY MAHADIK:

SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRI GAJANAN KIRTIKAR:

SHRI T. RADHAKRISHNAN:

SHRI ANANDRAO ADSUL:

DR. SHRIKANT EKNATH SHINDE:

DR. J. JAYAVARDHAN:

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:

- (a)  whether  the  Government  proposes  to  encourage  alternate  pollution  free  transport  in  the country and is considering to provide incentives to bio-fuel, CNG, ethanol and electric vehicles
- and if so, the details thereof;
- (b) whether any joint venture agreement has been signed between Tesla, the US based electric car  manufacturing  company  and  Indian  automobile  companies  with  a  view  to  introducing pollution-free public transport in the country, especially with regard to commercial and public
- motor vehicles and if so, the details and present status thereof
- (c)  whether  the  Government  has  asked  the  US  based  company  to  make  India  its  Asia manufacturing hub and offered land near major Indian ports to facilitate exports to South and South East Asian countries;
- (d) if so, the details thereof and the response received thereon; and
- (e)  the  manner  and  extent  to  which  the  country  is  likely  to  be  benefitted  by  cooperation  with
- Tesla, the US firm?

## ANSWER MINISTER  OF  STATE IN THE MINISTRY OF  HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI  BABUL SUPRIYO)

- (a):  To encourage alternate pollution free transport in the country, Department of Heavy Industry has formulated FAME - India Scheme [ F aster A doption and M anufacturing of (Hybrid &)

E lectric  Vehicles  in  India]  having  thrust  on  hybrid  and  electric  vehicles  to  become  the  first choice for the purchasers so that these vehicles can replace the conventional vehicles and thus reduce fossil fuel consumption in the country from the automobile sector. The Government is offering  incentive  in  the  form  of  upfront  reduction  of  price  to  the  consumer  who  buys electric/hybrid  vehicles  under  this  scheme,  which  is  specified  in  the  Gazette  Notification  S.O. 830  (E)  dated  13 th March,  2015  available  in  the  website  of  Department  of  Heavy  Industry [http://dhi.nic.in].

The  Ministry  of  Road  Transport  and  Highways  (MoRTH)  has  also  issued  following notifications to encourage alternate pollution free transport in the country, which are available in the website of MoRTH [http://morth.nic.in]:-

- (i) GSR 682(E) dated 12/07/2016 regarding mass emission standard for flex-fuel (E 85) or (E 100) and ethanol (ED 95) vehicles.
- (ii) G.S.R. 412(E) dated 11/04/2016 regarding Biodiesel.
- (iii) G.S.R. 629(E) dated 24/06/2016 regarding retro-fitment of Hybrid Electric Vehicles.

(b): Automobile  Industry  was  delicensed  in  July  1991  with  the  announcement  of  the  New Industrial Policy.  The passenger car was however delicensed in 1993.  The norms for foreign investment and import of technology have also been progressively liberalized over the years for vehicles manufacturer including passenger cars in order to make this sector globally competitive.

Therefore  the  Department  of  Heavy  Industry,  Government  of  India  is,  at  present,  not aware  of any such joint venture agreement  between  Tesla, the US  based  electric car manufacturing company and Indian automobile companies.

(c):       No Madam, the Government has not made any such offer formally.

(d) & (e):   Does not arise in view of (c) above.

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