According to reports, the Indian government has rejected the request by BYD Motors and Megha Engineering and Infrastructures Ltd (MEIL) to build a $1 billion four-wheeler manufacturing facility in India.
The Department for Promotion of Industry and Internal Trade (DPIIT) received a proposal outlining ideas for an electric vehicle manufacturing facility in Hyderabad.
The DPIIT requested feedback from numerous departments in order to evaluate the investment proposal. Security worries surrounding Chinese investments in India were brought up during the discussions.
The Centre rejected the application from BYD Motors and Megha Engineering and Infrastructures Ltd. after security issues were brought up during the vetting process.
“Security concerns with respect to Chinese investments in India were flagged during the deliberations,” an official was quoted as saying by The Economic Times.
According to a second person involved in the talks, current restrictions do not authorise such investments.
According to reports, the venture told the DPIIT that it will produce 10,000–15,000 electric automobiles each year.
According to one of the people connected to the project, MEIL would offer the funding while BYD would give the technology and expertise.
In terms of sales, BYD, the top producer of electric vehicles worldwide, has already released two EV models in India.
In addition, BYD is helping Olectra Greentech, a division of MEIL, with technical support for its electric buses.
Orders for 2,000 buses worth Rs 3,500-3,500 crore have been placed with Olectra, which expects to deliver them in the following 12 to 18 months.
India changed its foreign direct investment regulations earlier in 2020, requiring government approval for projects originating from nations with which it shares a land border.
On such recommendations, a committee led by the home secretary makes decisions.
Although no nation is officially mentioned in the regulation, it was created to stop Chinese businesses from buying Indian enterprises.
The DPIIT is also investigating Chinese automakers with connections to Indian firms after claims that some of them have signed on proxy Indian partners to represent them, without any long-term strategic purpose of shifting manufacturing capacity to India.
(Source:www.hindustantimes.com)
The Department for Promotion of Industry and Internal Trade (DPIIT) received a proposal outlining ideas for an electric vehicle manufacturing facility in Hyderabad.
The DPIIT requested feedback from numerous departments in order to evaluate the investment proposal. Security worries surrounding Chinese investments in India were brought up during the discussions.
The Centre rejected the application from BYD Motors and Megha Engineering and Infrastructures Ltd. after security issues were brought up during the vetting process.
“Security concerns with respect to Chinese investments in India were flagged during the deliberations,” an official was quoted as saying by The Economic Times.
According to a second person involved in the talks, current restrictions do not authorise such investments.
According to reports, the venture told the DPIIT that it will produce 10,000–15,000 electric automobiles each year.
According to one of the people connected to the project, MEIL would offer the funding while BYD would give the technology and expertise.
In terms of sales, BYD, the top producer of electric vehicles worldwide, has already released two EV models in India.
In addition, BYD is helping Olectra Greentech, a division of MEIL, with technical support for its electric buses.
Orders for 2,000 buses worth Rs 3,500-3,500 crore have been placed with Olectra, which expects to deliver them in the following 12 to 18 months.
India changed its foreign direct investment regulations earlier in 2020, requiring government approval for projects originating from nations with which it shares a land border.
On such recommendations, a committee led by the home secretary makes decisions.
Although no nation is officially mentioned in the regulation, it was created to stop Chinese businesses from buying Indian enterprises.
The DPIIT is also investigating Chinese automakers with connections to Indian firms after claims that some of them have signed on proxy Indian partners to represent them, without any long-term strategic purpose of shifting manufacturing capacity to India.
(Source:www.hindustantimes.com)
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