India rejects Chinese automaker BYD's $1 billion plan over ‘security concerns’: Report

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

India has rejected Chinese automaker BYD Co's 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.

The Atto 3 electric SUV made by Chinese carmaker BYD, at the Fully Charged Live electric vehicle trade show in Farnborough, Britain, (REUTERS)

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.

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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.

Read: BYD begins deliveries of Atto 3 electric SUV in India

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