Tesla founder and CEO Elon Musk is planning to visit India later this month to meet PM Narendra Modi, reported news agency Reuters.

The purpose of the meeting is expected to be about discussing Musk's intentions to invest in the country and establish a new factory for Tesla.

Musk's meeting with PM Modi is scheduled for the week of April 22 in New Delhi. During his visit, he is also expected to make a separate announcement regarding his plans for India.

Earlier reports suggested that Tesla officials would be visiting India this month to explore potential sites for a manufacturing plant. The establishment of such a facility is estimated to require an investment of approximately $2 billion - $3 billion.

The electric vehicle (EV) manufacturing giant is in the initial stages of talks with Reliance Industries Limited (RIL) to form a joint venture to build a manufacturing plant in India, reported The Hindu BusinessLine quoting sources.

Tesla has been actively surveying various locations across India, with Gujarat and Maharashtra emerging as potential sites for the plant. Maharashtra appears to be the favoured choice, as per the report's claims.

In a recent discussion on X hosted by Nicolai Tangen, CEO of Norges Bank Investment Management, Musk affirmed Tesla's intention to enter the Indian market. He highlighted India's rapidly growing population and highlighted the need for electric vehicles in the country.

"India is now the most populous country in the world. India should have electric cars just like every other country has electric cars. It's a natural progression to provide Tesla electric vehicles in India," said Musk.

The government introduced a new Electric Vehicle (EV) policy in March aimed at promoting India as a global manufacturing hub for EVs. The policy requires a minimum investment of Rs 4,150 crore with no maximum investment cap, aimed at attracting investment from reputable global EV manufacturers.

Besides the minimum investment requirement, the policy outlines a three-year timeline for setting up manufacturing facilities in India, commencing commercial production of EVs, and achieving 50% domestic value addition (DVA) within five years at the maximum.

According to the Ministry of Commerce & Industry, the policy will provide Indian consumers with access to the latest technology, boost the ‘Make in India' initiative, and strengthen the EV ecosystem by promoting healthy competition among EV players. This is expected to lead to high volume of production, economies of scale, lower cost of production, reduce imports of crude oil, lower trade deficit, reduce air pollution, particularly in cities, and have a positive impact on health and the environment.

Additionally, the ministry stated that achieving DVA during manufacturing would include a localisation level of 25% by the third year and 50% by the fifth year.