BANGALORE — Billionaire Elon Musk’s Tesla Inc. will set up an electric-motor vehicle production unit in the southern Indian condition of Karnataka, in accordance to a governing administration doc witnessed by Reuters on Saturday.

“The U.S. organization Tesla will be opening an electric motor vehicle production unit in Karnataka,” the condition governing administration explained in a transient statement.

The statement was part of a broader doc outlining the highlights of India’s spending plan to its men and women in the regional language of Kannada.

Past month, the EV maker integrated Tesla Motors India and Strength Non-public Confined with its registered office in the town of Bangalore in Karnataka, a hub for world wide know-how companies.

State Main Minister B.S. Yediyurappa had then explained in a tweet, which was subsequently deleted, that Tesla would begin its functions in India with an R&D unit in Bangalore.

It was not immediately distinct if the Saturday statement was referring to the same unit.

Tesla and the office of Karnataka condition main minister did not immediately answer to Reuters’ ask for for responses.

Musk has tweeted a number of instances about the firm’s impending foray into India. In December, the Tesla CEO verified in an exchange on Twitter that Tesla will launch in the state in 2021.

India has been keen to minimize its oil dependence and slash down on air pollution, but its endeavours to boost EVs have been stymied by a absence of financial investment in production and infrastructure these types of as charging stations.

To increase financial investment, India ideas to present $4.6 billion in incentives to companies placing up advanced battery production facilities, Reuters claimed previous calendar year.