India turns down BYD Motors' EV plant proposal worth $1bn

Hyderabad, July 24 (KNN) The central government has rejected Chinese automaker BYD Motors' proposal to establish a USD 1 billion four-wheeler manufacturing facility in India in collaboration with Hyderabad-based Megha Engineering and Infrastructures Ltd (MEIL).

The joint application by the two companies to the Department for Promotion of Industry and Internal Trade (DPIIT) aimed to build an electric vehicle plant in Hyderabad.

However, the Centre rejected the proposal, citing security concerns and border tensions with China.

Earlier reports had indicated that MEIL, along with their Chinese partner BYD Co, had expressed interest in setting up an electric vehicle manufacturing plant in Telangana, with a joint investment of over USD 1 billion (around Rs 8,000 crore).

The companies decided to approach the state government for land and other required facilities once the necessary approvals were obtained.

The Indian government was cautious about permitting Chinese electric vehicle maker BYD to establish operations in the country due to security concerns and ongoing border tensions.

To address these concerns and control foreign investments, the Centre now requires neighbouring countries, including China, to seek approval from the Indian government before investing in Indian firms.  (KNN Bureau)