Tesla has developed plans to manufacture and sell battery storage systems in India and has submitted a proposal to officials seeking incentives to create a facility, according to reports.

For weeks, Tesla has been in talks with Prime Minister Narendra Modi about establishing a new electric vehicle (EV) factory in India to produce a car priced under $24,000. However, its renewables effort has yet to be reported.

Tesla recommended supporting the country's battery storage capacities in recent discussions in New Delhi with its 'Powerwall, a device that can store electricity from solar panels or the grid for usage at night or during outages.

Although Tesla requested a number of incentives to establish a battery storage factory, Indian officials informed the company that these would not be accessible. However, they suggested that the government may assist the corporation in developing a fair economic model by providing subsidies to individuals purchasing such products.

While both Tesla and the Indian government remain interested in the proposal, and New Delhi is still reviewing it, it is unclear whether the plan will be implemented.

The Powerwall proposal is part of Tesla's intentions for a bigger presence in India, beyond EVs, according the reports that Tesla was eager to find residential as well as industrial clients for its battery storage systems.

Large-scale policy calibration will be required. Tesla intends to establish a Powerwall business in India.

India has increased energy supply to towns and villages, but there are still peak-time shortages as demand rises. It is heavily reliant on coal-fired power generation because storage systems are expensive and not yet widely available.