Centre approves 21 FDI proposals amounting Rs 2,410 crore

In compliance with the recommendations from Foreign Investment Promotion Board (FIPB) in its meeting held on August 24, 2012, the government has cleared 21 Foreign Direct Investment (FDI) proposals of about Rs 2,410 crore. Out of this, 8 proposals are relating to FDI in Brownfield pharmaceuticals sector which amounts to Rs 1,842.55 crore.

These pharma companies might have to maintain the quantitative level of NLEM (National List of Essential Medicines) drugs production annually at the time of induction of foreign investment, for the next five years. Besides, the Research & Development expenses incurred annually by the investee company at the highest level in the three preceding years to the induction of foreign investment will be maintained in value terms annually over the next five years post induction of FDI.

US drug maker Pfizer's plan to invest about Rs 800 crore in an operating-cum-investing company to carry out the business in pharmaceutical sector, while Sterlite Networks, Dadar and Nagar Haveli, which plans to bring in FDI worth Rs 500 crore for telecom business, was cleared. Mumbai based Arch Pharmalabs' proposed to invest Rs 372 crore.

FIPB also approved the proposal of The Wall Street Journal for change in the foreign collaborator by way of overseas merger within group companies. India allows FDI in most of the sectors through automatic route, though approval of FIPB is required in certain sensitive sectors, like telecom. FDI inflows in the country for fiscal 2011-12 were at $36.50 billion.