Elon Musk-led Tesla Inc is exploring an arrangement with Tata Power, to set up charging infrastructure for electric vehicles in India, CNBC-TV18 reported on Friday, citing sources.

The share price of Tata Power shot up 5.5% after the report. The US electric-car maker has indicated that it will launch its Model 3 electric sedan in India later this year.

The talks between Tata Power and Tesla are in the initial stages and no arrangements have been finalised yet, the report said. However, neither of the two companies issued any statement on the issue.

Tesla is also planning to set up an electric-car manufacturing unit near Bengaluru in Karnataka, the state government had said in a brief statement without divulging any details. The US auto major is expected to start with assembling its cars in India and later get into manufacturing as the numbers pick up. In January, the company had incorporated Tesla Motors India and Energy Private Ltd with its registered office in Bengaluru.

Tata Motors Ltd, the car making unit of Tata Sons, last week denied any tie-up with Tesla, after media reports suggested the two companies were discussing a partnership.