Money Jul 5, 2013
New Delhi: The Foreign Investment Promotion Board (FIPB) today cleared seven FDI proposals in Indian pharmaceutical companies, while deferring three cases on concerns of ownership control.
"FIPB has considered all the applications, and taken decisions on merit. We have cleared seven proposals and deferred three," a finance ministry official said after the meeting of the board.
The FIPB, headed by Department of Economic Affairs, secretary, Arvind Mayaram, discussed 30 Foreign Direct Investment (FDI) proposals, including 10 from pharma sector.
"In cases where issues related to control were there, the decision in those cases have been kept in suspension till the review process is completed by DIPP. We will wait for final policy decision," the official said without disclosing the proposals that were cleared by the board.
The proposals which were discussed in the meeting today include that of Singapore's GlaxoSmithKline Pte Ltd, USA's Mylan Inc, Mauritius-based Castleton Investment Ltd, Mumbai-based Ferring Therapeutics and Hyderabad-based Verdant Life Sciences.
Currently, India permits 100 percent FDI in pharma sector through automatic approval route in the new projects but the foreign investment in the existing pharma companies are allowed only after FIPB's approval.
The government is likely to soon finalise FDI policy with regard to existing drug companies.
The Department of Industrial Policy and Promotion (DIPP) had earlier raised concerns over spate of acquisitions of domestic pharma firms by multinationals.
FDI policy in the sector has already been discussed at the prime minister's level in December last year. Accordingly, all foreign investments in existing domestic pharma firms were allowed only after clearance by the FIPB.
More From Firstbiz.