MLR supervises BYD's illegal Xi'an project
- Source: Global Times
- [16:50 December 08 2010]
- Comments
The Ministry of Land and Resources said on its website Thursday that it has urged the Department of Land and Resources of Shaanxi and supervisory organs on Wednesday to investigate and deal with the issue of illegal expansion projects and occupation of land of BYD Auto Co., Ltd. (BYD).
According to the report, the issue involves illegal land prerequisition and illegal occupation of land by the corporation.
Yang Lu, head of the Xi'an Bureau of the State Land Superstition, said, "BYD's issue is mainly about procedural problems and prior-to-approval land occupation. The Department of Land and Resources of Shaanxi is still investigating on this issue, and the whole project has already been suspended."
However, senior officials of BYD claimed that they have not heard of the issue yet.
According to the report from the Ministry of Land and Resources,BYD’s project is mainly about investments for the realization of a construction project, which after being completed, is expected to reach an annual production capability of 200,000 vehicles, and a land requisition of 4369.2 mu (719.7 acres) in Caotang and Pangguang Towns in Hu County.
Based on information from documents obtained from the Xi’an government, the total value of BYD’s investment is of 5 billion yuan ($737.5 million).
The project of BYD's second factroy in Xi'an started on December 8, 2009.
A local official said that the main reasons for the recent illegal activities are the pressure exerted on the city’s government to boost the economy of the city and the long-taking declaration procedure.
Officials from the MLR said, however, that the occupation of more than 525 mu of arable land should be approved by the State Council.
Analysts believe that the government’s suspension of BYD’s factory project will greatly impact on the company’s desperate need for production capacity.
