Pharma sector biggest gainer in FDI clearance worth Rs 2,410 cr
12 Sep 2012 1:25 AM GMT
The government said on Tuesday that it has cleared 21 foreign direct investment (FDI) proposals worth Rs 2,410 crore, including eight from the pharmaceutical sector.
The Foreign Investment Promotion Board (FIPB) in its meeting held on 24 August had approved 21 FDI proposals, which include eight proposals worth Rs 1,842.55 crore relating FDI in brownfield pharmaceutical sector, the finance ministry said in a statement.
The board, headed by the Department of Economic Affairs secretary Arvind Mayaram, cleared the proposal of Pfizer Ltd for ‘induction of foreign equity in an operating-cum-investing company to carry out the business in pharmaceutical sector’ to the tune of Rs 800 crore.
Also Sterlite Networks, Dadar and Nagar Haveli, plan to bring in FDI worth Rs 500 crore for telecom business was cleared.
Further, Mumbai based Arch Pharmalabs’ proposal for inducting Rs 372 crore of foreign investment for manufacture and sale of active pharmaceutical ingredients has been approved.
The FIPB also approved the proposal of The Wall Street Journal for change in the foreign collaborator by way of overseas merger within group companies.
Besides, nod was given to DB Corp to increase the foreign equity participation ‘to carry out the business of publication of newspapers including the business of developing, editing, publishing, printing, distributing and marketing newspapers and other publications and FM radio business’, the statement said.
These pharma companies would be required to maintain for the next five years the quantitative level of NLEM (National List of Essential Medicines) drugs production annually at the time of induction of foreign investment.
SHARMA TO TAKE UP SINGLE BRAND RETAIL WITH RAVI
Commerce and industry minister Anand Sharma will meet his micro, small and medium enterprises (MSME) counterpart Vayalar Ravi later this week to discuss sourcing norms related to FDI in single brand retail. ‘The commerce and industry minister wants to discuss the issue with the MSME minister and to find out a solution,’ a source said.
This will be preceded by a secretary level meeting of the two ministries.
The meeting assumes significance as Swedish furniture retailer IKEA, which plans to invest Rs 10,500 crore to set up its own stores in India, had sought relaxation in certain conditions related to the mandatory 30 per cent sourcing from micro and small enterprises (MSEs).
Sharma has ruled out relaxing the 30 per cent sourcing norm for foreign single brand retailers even as the MSME ministry has been opposing its relaxation saying it would affect interest of small units.
‘Any relaxation which they demand, if it affects my people and industry, I won’t accept... We have to protect our MSEs and there is no compromise on that part,’ Ravi had said earlier.
The Swedish furniture maker has also proposed that the calculation of the 30 per cent norm be done for cumulative periods of 10 years of operations starting with the approval of the present application.
The government has removed 51 per cent cap on FDI in single brand retail.
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