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    HomeNewsBusinessCompaniesFIPB not to clear brownfield pharma FDI proposals: DIPP

    FIPB not to clear brownfield pharma FDI proposals: DIPP

    Brownfield pharma FDI proposals should not be cleared by FIPB, says DIPP

    June 11, 2013 / 09:34 IST

    The DIPP does not want brownfield pharma FDI proposals to be cleared by FIPB, till it finalises norms for foreign players in the sector. Sources told CNBC TV 18 that it is working on brownfield FDI norms for the pharma industry, as it feels that the informal health ministry guidelines that FIPB presently considers are not monitorable and enforceable.


    Amongst other proposals, the DIPP is considering to mandate foreign companies to invest amounts equivalent to the brownfiled acquisition, in either green-filed manufactruing facilities or R&D units.


    Observing that between 2005 and 2012, financial liability of India based foreign pharma subsidiaries grew up by as much as 20 times, DIPP sources maintained that overseas pharma companies should not be allowed to acquire local pharma units for transforming them in to marketing entities.

    Significantly, the FIPB had recently deferred  Mylan Inc’s USD 1.6 billion FDI proposal to acquire Agila Specialties due to the tussle between DIPP and the finance ministry on pharma FDI.

    first published: Jun 10, 2013 10:49 pm

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