It seeks to manufacture and sell battery storage systems in the country.
The development follows a discussion between the company’s executives and Indian Commerce Minister Piyush Goyal last month.
During the meeting, Tesla is said to have shown interest in establishing a new electric vehicle (EV) facility that would manufacture low-cost EVs.
The report added that Tesla continues to remain in talks that are overseen directly by Indian Prime Minister Narendra Modi.
While Tesla has requested a variety of incentives to establish this battery storage plant, unnamed sources told the news agency that these incentives weren’t going to be given.
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However, the sources added that the government may assist the company in developing a fair economic model by providing subsidies to individuals buying such items.
Although Tesla and the government remain interested in the concept, it is unclear whether the plan will be implemented.
One source said: “Large policy-level calibration will be required. Tesla’s intent is to have the [Tesla-branded product] Powerwall business in India.”
Earlier in March this year, Tesla revealed plans to build a new assembly plant in northern Mexico as part of its effort to expand operations outside of the US.