PNS|New Delhi
The government has rejected a US$ 1 billion investment proposal of Chinese electric car maker BYD and its Hyderabad-based partner Megha Engineering and Infrastructures Ltd (MEIL) to set up an electric vehicle manufacturing plant, sources said.
Domestic infra major MEIL and BYD’s joint venture proposed to set up an electric vehicle (EV) manufacturing plant in Telangana with a joint investment outlay of US$ 1 billion (around Rs 8,200 crore).
Sources said that the proposal was submitted to the commerce and industry ministry which was circulated for necessary scrutiny and approval from the ministry of heavy industries, the ministry of external affairs and the home ministry.
It was discussed and decided not to approve the proposal, they said.
Comments from BYD could not be obtained as an email query remained unanswered. MEIL also did not respond to an e-mail seeking its comments on the development.
The proposal was under scrutiny because as per FDI rules, any proposal having investments from countries, which are sharing land border with India, mandatorily requires government permission.
