Wednesday 23 April 2014
News updated at 9:09 PM IST
Weather
Max: 35.5°C
Min : 21.5°C
In Bangalore
Partially cloudy

Govt to finalise FDI policy in pharma before FIPB meet

New Delhi, June 30, 2013, PTI:
File image

The government is likely to finalise FDI policy with regard to existing drug companies ahead of the FIPB meeting on July 5, which is scheduled to take up as many as 10 foreign investment proposals.

The Department of Industrial Policy and Promotion (DIPP) has raised concerns over spate of acquisitions of domestic pharma firms by multinationals. The DIPP has sought the intervention of the Prime Minister’s Office on this matter.

Government sources said that on an average about 25 per cent of the FIPB agenda is related with pharma sector.


The continuing acquisitions of Indian pharma firms by foreign companies would pose serious problems in availability of life-saving drugs to consumers in near future, they added. Earlier, the Department had asked the Foreign Investment Promotion Board (FIPB) not to take decision on any related proposal.

FDI policy in the sector has already been discussed at the PM level in December last year. Accordingly, all foreign investments in existing domestic pharma firms was allowed only after clearance by the FIPB.

With no let up in multinationals seeking nod to acquire stake in Indian pharma firms despite government putting norms to check it, the DIPP has raised concerns stating the FDI policy in the sector needs a relook again at the PMO level.

Currently, India permits 100 per cent FDI in pharma sector through automatic approval route in the new projects but the foreign investment in the existing pharma companies were allowed only through FIPB’s approval.

In 2008, Japanese firm Daiichi Sankyo had bought out the country’s largest drug maker Ranbaxy for $4.6 billion. US-based Abbot Laboratories had acquired Piramal Health Care’s domestic business for $3.7 billion.

Go to Top

Photo Gallery
Bengaluru FC player in a Jubilant mood at International Airport,Bengaluru after winning I league...

Bengaluru FC player in a Jubilant mood at International Airport,Bengaluru after winning I league...

Timothy John Bristow, Sir Robert Bristow’s nephew with his wife Rebecca visits the Harbour Bridge...

Timothy John Bristow, Sir Robert Bristow’s nephew with his wife Rebecca visits the Harbour Bridge...

Priyanka Vadra shares meal with a village woman in a field during an election campaign for her...

Priyanka Vadra shares meal with a village woman in a field during an election campaign for her...

Encyclopaedia Britannica President Jorge Cauz and Geeta Dharmarajan, founder & executive directoR...

Encyclopaedia Britannica President Jorge Cauz and Geeta Dharmarajan, founder & executive directoR...

School children greet Sachin Tendulkar on the eve of his birthday in Moradabad...

School children greet Sachin Tendulkar on the eve of his birthday in Moradabad...

An Indian Hindu devotee prays to the river Ganges, in Varanasi, India...

An Indian Hindu devotee prays to the river Ganges, in Varanasi, India...

A ragpicker girl Zahanara Khatun, 12, looks at the camera as she searches for recyclable items at...

A ragpicker girl Zahanara Khatun, 12, looks at the camera as she searches for recyclable items at...

Indians stand on the banks of the River Yamuna, covered in industrial effluence on Earth Day in...

Indians stand on the banks of the River Yamuna, covered in industrial effluence on Earth Day in...

Indian devotees pray and take dip on the banks of the river Ganges, in Varanasi...

Indian devotees pray and take dip on the banks of the river Ganges, in Varanasi...

A man poses as he gets his face painted ahead of the sixth phase of India's general election...

A man poses as he gets his face painted ahead of the sixth phase of India's general election...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523