PM Vetoes DIPP, Health Min to Clear the Way for Pharma
FDI
August 17, 2013
Decks cleared for Mylan's $1.6b Takeover of Agila
The decks have been cleared for USbased Mylan Inc's
$1.6-billion takeover of Agila Specialties after Prime Minister Manmohan Singh
overruled objections from the department of industrial policy and promotion
(DIPP) and health ministry, sending a positive signal to foreign investors as
the country battles a sliding rupee."The present proposals, before the
Foreign Investment Promotion Board (FIPB) or as approved by it, will go through
under the existing policy," Commerce and Industry Minister Anand Sharma
told reporters at the conclusion of a meeting, chaired by the prime minister,
and attended by Finance Minister P Chidambaram, Health Minister Ghulam Nabi
Azad, and Sharma.
Mylan's application was cleared by FIPB last month, and
after Friday's decision, it is likely to be approved by the Cabinet Committee
of Economic Affairs (CCEA).
This will be one of the largest foreign investment
proposals cleared this year by the government, which is going all out to woo
foreign capital to finance its large current account deficit.
In addition to Mylan, other stake purchases by foreign
investors in Indian drug companies will also be approved.
At Friday's meeting, it was also decided that DIPP will
float a discussion paper regarding curbs that could be imposed on foreign
takeovers or stake purchases of existing Indian drug companies, after
consultations with all ministries concerned.
