Govt 'very hopeful' of Tesla setting up plant in state: Guj Minister

Gujarat Minister Rushikesh Patel on Thursday said his government was "very hopeful" that Elon Musk-led Tesla will choose the state to set up a plant and informed communication was on with the firm in this regard.

Patel was responding to queries based on news reports suggesting that the US-based electric vehicle maker was planning to set up a manufacturing plant in Gujarat.

"The state government is very hopeful of Tesla coming to Gujarat. Even Elon Musk is looking at Gujarat as his first choice. Gujarat is in his mind ever since he began a survey in India to find a suitable location to set up the plant," said Patel, who is health minister and spokesperson of the state government.

"Perhaps, very soon, an official announcement will be made in this regard (Tesla's entry. Let us hope Tesla comes to Gujarat. We will definitely welcome it and provide all necessary support, just like we gave Tata, Ford and Suzuki in the past," Patel told reporters in Gandhinagar.

Patel said communication (with Tesla) was on and this may be the reason such news (of firm planning factory in the state) was published.

Notably, Elon Musk, chief of the world's largest electric car producer Tesla Inc, met Prime Minister Narendra Modi in June in New York. Musk, after meeting the Prime Minister, had said he plans to visit India in 2024.

In September, Gujarat's Additional Chief Secretary (Industries and Mines Department) S J Haider said the Centre is in touch with Tesla to consider setting up a manufacturing facility in India.

He had said Gujarat will approach the company at an appropriate time to ensure the state has a significant role in the future plans.

Commerce and Industry Minister Piyush Goyal had recently said Tesla is looking to source components worth around USD 1.9 billion from India this year against USD 1 billion last year.