The Government of India has rejected BYD Motors’ proposal to set up a $1 billion manufacturing plant for a four-wheeler facility in collaboration with Megha Engineering and Infrastructures Ltd. The plant was supposed to be set up in the city of Hyderabad.

Earlier this month, Megha Engineering and Infrastructures and BYD submitted a proposal to the Department for Promotion of Industry and Internal Trade for a manufacturing plant.

In its proposal, the world’s largest electric vehicle maker had proposed to manufacture 10,000 – 15,000 electric cars a year.

Megha Engineering and Infrastructure is a Hyderabad-based infrastructure company that has been involved in constructing bridges, roads, and power plants.

Megha was putting up the capital for the plan, while BYD was putting in technology and process.

The centre has proposed to achieve 30% electric vehicles by 2030 and has announced various incentives to promote the adaptation of electric vehicles.

The proposal also included a plan to set up charging stations pan India and build R&D and training centres.

In April 2020, the government changed its foreign direct investment policy, making governmental approval mandatory for investment from countries it shares land-border.