HT first reported, on January 13, that India was on the verge of announcing a new EV policy with an eye on attracting global majors such as Tesla, and getting a foothold in the EV and battery industry to meet its climate, economic and strategic objectives. The policy was released a day before the code of conduct kicked in for the elections, showing the importance the government attaches to the sector. On Wednesday, FT first reported that a Tesla team would travel this month to India to scout for manufacturing locations.

The person familiar with the company’s plans said that Tesla is considering Gujarat, Maharashtra or Tamil Nadu as the site for its plant, primarily because these are coastal states with ports. Tesla, the person confirmed, is looking to make what will possibly be the largest foreign direct investment (FDI) in India. This may, tentatively, include a direct and immediate investment of $3 billion to produce a new small car from an Indian plant, a $10 billion commitment from other partners to support this manufacturing venture, and a cumulative $15 billion in the battery industry ecosystem.