India has turned down Chineseelectric vehicle (EV) manufacturer BYD's $1 billion proposal to set up a factory in partnership withMegha Engineering and Infrastructures in Hyderabad, Reuters reported.
An investment proposal by BYD was submittedto the Department for Promotion of Industry and Internal Trade (DPIIT) which said the Chinese company would build electric cars and batteries in India.
It also included plans toup charging stations, research and development, and training centres in the South Asian country.
However,DPIIT had sought opinions from other government departments on the proposal.
"Security concerns with respect to Chinese investments in India were flagged during the deliberations," the report quoted an Indian official as saying.
Another official said these investments are not allowed as per theforeign direct investment (FDI) rules in India which require the government'sapproval for investments from countries it shares its borders,EVs Insider reported.
BYD is aChinese conglomerate manufacturing company situated inShenzhen, Guangdong, China. It has itssubsidiary Olectra Greentech in India which manufactureselectric buses.