NEW DELHI, July 22 (Reuters) – India has rejected Chinese automaker BYD Co’s (002594.SZ) proposal to arrange a $1 billion manufacturing unit in India in partnership with Hyderabad-based Megha Engineering and Infrastructure Ltd, the Economic Times reported on Saturday.

Reuters reported this month that BYD had submitted a $1 billion funding proposal to construct electrical automobiles and batteries in India in partnership with an area firm.

Reuters couldn’t independently confirm the contents of The Economic Times’ report.

India’s Department of Commerce, Department for Promotion of Industry and Internal Trade (DPIIT) had sought opinions from different departments on the funding proposal, the report stated.

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

Writing by Sarita Chaganti Singh; enhancing by Jason Neely

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