BYD of China and Megha Engineering and Infrastructures Limited (MEIL) of Hyderabad have submitted a joint proposal to establish a 10,000-15,000 unit four-wheeler manufacturing plant in Hyderabad.

According to officials familiar with the situation, the investment will be close to $1 billion, and proposals have been submitted to the Department of Promotion of Industry and Internal Trade (DPIIT).

"Megha will invest in the project, while BYD will provide technology and know-how," one person familiar with the plans said, adding that the joint venture's equity structure and mechanisms for remitting royalties to BYD are being discussed.

Olectra Greentech, a unit of MEIL has already developed electric buses with technical support from BYD. The company is currently sitting on orders for 2,000 buses worth ₹3,000-3,500 crore, which it plans to deliver in the coming 12-18 months. "We are examining the proposal. Since it is a proposal from a land-border sharing country, it will be carefully examined," said a government official.

Since April 2020, a nod is required for investments coming into India from its land-border sharing countries. A prior approval is given by a committee headed by the Union Home Secretary.