Big blow to Chinese giant electric car company BYD, Modi government rejects proposal to invest one billion dollars
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Company trying to set foot in India
The Chinese Electric Company is trying to establish a fast foothold in India. According to media reports, DPIIT had sought inputs from various departments to assess the investment proposal of the company. During the discussion, concerns were raised on security issues related to Chinese investments in India. The government had similar concerns in the BYD case, which have now come to the fore. According to the report, there is uneasiness in the Ministry of Home Affairs and External Affairs regarding the entry of Chinese companies in view of the government’s stand to keep cross-border players out of the Indian market due to security concerns. Foreign companies have to enter into agreements with local companies to enter India.
In some cases, it has been observed that local companies are like dummies. The government had similar concerns in the BYD case. Due to this, the central government has rejected it.
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What was the plan of the company
According to media reports, the Chinese electric company had proposed that it would manufacture 10,000-15,000 electric cars annually. BYD, the world’s leading electric vehicle manufacturer in terms of sales, has already introduced two EV models in India. In addition, BYD is providing technical support to Olectra Greentech, a subsidiary of MEIL, for its electric buses. Let us tell you that Olectra has got an order of 2,000 buses, worth Rs 3,000-3,500 crore, which it plans to complete within the next 12-18 months.
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The government had amended
Let us tell you that in the year 2020, India had amended its foreign direct investment policy. This made government approval mandatory for investments coming from countries with which India shares a land border. A committee headed by the Home Secretary takes a decision on such proposals.
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