India rejects BYD’s $1 billion factory proposal, Economic Times reports

NEW DELHI, July 22 (Reuters) – India has rejected Chinese automaker BYD Co’s (002594.SZ) proposal to set up a $1 billion factory in India in partnership with Hyderabad-based Megha Engineering and Infrastructure Ltd, the Economic Times reported on Saturday.

Reuters reported this month that BYD had submitted a $1 billion investment proposal to build electric cars and batteries in India in partnership with a local company.

Reuters could not independently verify the contents of The Economic Times’ report.

India’s Department of Commerce, Department for Promotion of Industry and Internal Trade (DPIIT) had sought opinions from other departments on the investment proposal, the report said.

“Security concerns with respect to Chinese investments in India were flagged during the deliberations,” the report quoted an Indian official as saying.

Writing by Sarita Chaganti Singh; editing by Jason Neely