US assault on Re starts paying; Indian Govt okays Mylan FDI plea
29 Aug 2013 4:04 AM IST
US-based Mylan Inc's Rs 5,168 crore proposal to acquire Agila Specialties Pvt Ltd -- a subsidiary of pharma firm Strides Arcolab -- was cleared by the Foreign Investment Promotion Board (FIPB) on Tuesday.
‘Mylan proposal was cleared,’ Economic Affairs Secretary Arvind Mayaram told reporters after the meeting FIPB meeting.
Since the Mylan's investment proposal is of over Rs 1,200 crore, it will go to the Cabinet Committee on Economic Affairs for final approval.
According to a 'Share Purchase Agreement', Mylan would acquire entire issued and outstanding share capital of Agila Specialities Pvt Ltd -- a subsidiary of pharma firm Strides Arcolab.
Mylan had moved the FIPB to seek approval for the acquisition.Agila -- a developer, manufacturer and marketer of high- quality generic injectable products -- would be acquired by Mylan directly or through one of its subsidiaries.The FIPB had taken up the proposal in its 5 July meeting, but kept decision in ‘abeyance’ pending finalisation of policy on FDI in brownfield pharma projects involving transfer of control.
Mayaram, who heads the FIPB, further said that all pending pharmaceutical investment proposals related with brownfield projects too have been cleared.The FIPB had also kept decision in abeyance on Rs 330 crore investment proposal Symbiotec Pharmalab Ltd, Madhya Pradesh. It has now been cleared. The proposal of Lotus Surgical Specialties too has been approved by the FIPB.
Also, keen to get the investment cycle re-started, the Cabinet Committee on Investment (CCI) has cleared three dozen projects envisaging an investment of Rs 1.83 lakh crore, Indian Finance Minister P Chidambaram said on Tuesday.
The projects approved by the CCI on Monday include 18 power projects with an investment of Rs 83,772 crore and nine other infrastructure projects with a total outlay of over Rs 14,084 crore, he told reporters.Another nine projects reviewed by the CCI involved an investment of over 85,000 crore.The CCI, Chidambaram said, ‘cleared projects with a total outlay of Rs 1.83 lakh crore’.
As regards the fuel supply agreements (FSA) for the power projects, the minister said all the FSAs would be signed by 6 September. The earlier deadline of signing the FSA was 31 August.
The message of these decisions, Chidambaram said, was to re-start the investment cycle.
‘Message that we are sending, we are very keen to get investment cycle restarted. ...the cycle has started and we are pushing it further,’ he said.
The minister further said that banks have already disbursed as much as Rs 30,000 crore for the power sector projects and with clearances in place they would provide more funds for these projects.
‘Mylan proposal was cleared,’ Economic Affairs Secretary Arvind Mayaram told reporters after the meeting FIPB meeting.
Since the Mylan's investment proposal is of over Rs 1,200 crore, it will go to the Cabinet Committee on Economic Affairs for final approval.
According to a 'Share Purchase Agreement', Mylan would acquire entire issued and outstanding share capital of Agila Specialities Pvt Ltd -- a subsidiary of pharma firm Strides Arcolab.
Mylan had moved the FIPB to seek approval for the acquisition.Agila -- a developer, manufacturer and marketer of high- quality generic injectable products -- would be acquired by Mylan directly or through one of its subsidiaries.The FIPB had taken up the proposal in its 5 July meeting, but kept decision in ‘abeyance’ pending finalisation of policy on FDI in brownfield pharma projects involving transfer of control.
Mayaram, who heads the FIPB, further said that all pending pharmaceutical investment proposals related with brownfield projects too have been cleared.The FIPB had also kept decision in abeyance on Rs 330 crore investment proposal Symbiotec Pharmalab Ltd, Madhya Pradesh. It has now been cleared. The proposal of Lotus Surgical Specialties too has been approved by the FIPB.
Also, keen to get the investment cycle re-started, the Cabinet Committee on Investment (CCI) has cleared three dozen projects envisaging an investment of Rs 1.83 lakh crore, Indian Finance Minister P Chidambaram said on Tuesday.
The projects approved by the CCI on Monday include 18 power projects with an investment of Rs 83,772 crore and nine other infrastructure projects with a total outlay of over Rs 14,084 crore, he told reporters.Another nine projects reviewed by the CCI involved an investment of over 85,000 crore.The CCI, Chidambaram said, ‘cleared projects with a total outlay of Rs 1.83 lakh crore’.
As regards the fuel supply agreements (FSA) for the power projects, the minister said all the FSAs would be signed by 6 September. The earlier deadline of signing the FSA was 31 August.
The message of these decisions, Chidambaram said, was to re-start the investment cycle.
‘Message that we are sending, we are very keen to get investment cycle restarted. ...the cycle has started and we are pushing it further,’ he said.
The minister further said that banks have already disbursed as much as Rs 30,000 crore for the power sector projects and with clearances in place they would provide more funds for these projects.
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