In an effort to attract Chinese automotive giant BYD to establish operations in Telangana, the state government has identified 809,371 square metres of land for its proposed electric car manufacturing project.

Senior government officials have confirmed that this 809,371 square metres land parcel, located in Chandanvelly in Shabad Mandal on the outskirts of Hyderabad, has been earmarked for the initiative.

However, before the project can proceed in India, it must first receive approvals from the governments of India and China.

"It will take at least one year for final approvals, land finalisation, and agreements, followed by an additional three years for setting up the plant," stated a source.

Previous roadblocks and renewed efforts

Discussions regarding BYD's potential entry into Telangana have resurfaced nearly two years after a proposed joint venture between BYD and Hyderabad-based Megha Engineering & Infrastructure (MEIL) was rejected by the Indian government in mid-2023.

The decision was made on security grounds following border clashes between Indian and Chinese troops in Galwan from 2020 onwards.

Government officials in Telangana have expressed optimism about the revival of the BYD-Megha Group joint venture, anticipating that an improvement in relations between India and China, along with a potential softening of the Indian government's stance, could facilitate the project's approval.

Megha Group and BYD had previously submitted a US$ 1 billion investment proposal to the central government, aiming to establish a facility capable of manufacturing 10,000-15,000 electric cars annually, beginning with BYD's e6 multi-utility vehicle.

Strategic location and existing collaborations

The 809,371 square metres site identified for BYD is located near a 607,028 square metre parcel in Seetharampur, where Megha Group's EV manufacturing subsidiary, Olectra Greentech, is setting up an electric bus production facility.

Olectra Greentech already has a technology collaboration agreement with BYD for the manufacturing and maintenance of electric buses until 2030. The company is preparing to commence partial production at its Seetharampur e-bus plant in the near future.

The new facility is expected to achieve a production capacity of 5,000 e-buses by the end of 2025, with plans to scale up to 10,000 units by next year, according to sources.