Tesla is looking to make and sell battery storage systems in India and has submitted a proposal to  officials seeking incentives to build the Powerwall battery storage factory, according to a report by Reuters. Alternatively, the American EV giant has also been in talks for weeks about setting up a new electric vehicle factory in India to build a car priced around USD 24,000 (approximately Rs 19 lakh), with discussions overseen directly by Prime Minister Narendra Modi.

In recent meetings in New Delhi, Tesla proposed supporting the country's battery storage capabilities with its "Powerwall", a system that can store power from solar panels or the grid for use at night or during outages, Reuters reported, quoting unnamed sources. Tesla's Powerwall is a sleek unit around a meter high, designed to be hung in a garage or outside a house.

Although Tesla sought a number of incentives to set up a battery storage factory, Indian officials have reportedly conveyed these would not be available. The Reuters report added that the government could help create a fair business model for the company by offering subsidies to those purchasing such products. While both Tesla and the Indian government remain keen on the proposal, and New Delhi continues to review it, it is not certain if the plan will be realised.

The Powerwall proposal is reportedly part of Tesla’s plans for a broader presence in India and the company is keen to find residential as well as industrial customers for its battery storage systems. Powerwall is aimed at domestic and light commercial use but Tesla could look at developing larger solutions for the industry if the India plan comes to fruition.

India has boosted electricity supplies to towns and villages but still faces peak-time shortages as demand surges. It is largely dependent on coal-based power generation as storage technologies are expensive and not yet widespread. The country is targeting an increase in non-fossil fuel power capacity to 500GW by 2030, from 186GW now.

Indian officials have also conveyed that Tesla will have to work on reducing the cost of its battery storage products, the newswire reported, adding that the government could help to unlock the market with demand expected to be high. With incentives, Powerwall costs more than USD 5,500 (around Rs 4.5 lakh) in California, with additional costs for solar panels.