BANGALORE — Billionaire Elon Musk’s Tesla Inc. will set up an electric powered-motor vehicle manufacturing unit in the southern Indian point out of Karnataka, in accordance to a government document viewed by Reuters on Saturday.

“The U.S. company Tesla will be opening an electric powered motor vehicle manufacturing unit in Karnataka,” the point out government mentioned in a short assertion.

The assertion was element of a broader document outlining the highlights of India’s spending budget to its people in the regional language of Kannada.

The Push Believe in of India also reported that the southern state’s chief minister B S Yediyurappa introduced the approach.

Last thirty day period, Tesla CEO Elon Musk, the world’s richest man, tweeted “as promised” in response to a report on a Tesla-concentrated website that the automaker was in talks with quite a few Indian states to open up an office, showrooms, an R&D centre and possibly a manufacturing facility in India.

Last thirty day period, the EV maker integrated Tesla Motors India and Energy Non-public Restricted with its registered office in the metropolis of Bangalore in Karnataka, a hub for international technologies businesses.

State Chief Minister B.S. Yediyurappa experienced then mentioned in a tweet, which was subsequently deleted, that Tesla would start out its operations in India with an R&D unit in Bangalore.

It was not straight away crystal clear if the Saturday assertion was referring to the exact unit.

Tesla and the office of Karnataka point out chief minister did not straight away respond to Reuters’ request for opinions.

India has been keen to minimize its oil dependence and reduce down on pollution, but its efforts to advertise EVs have been stymied by a absence of investment in manufacturing and infrastructure these kinds of as charging stations.

To boost investment, India strategies to present $4.six billion in incentives to businesses location up superior battery manufacturing facilities, Reuters reported final 12 months.

Bloomberg contributed to this report.