The prime minister's office on Monday accepted the Arun Maira committee report on pharma FDI that recommends that the Competition Commission of India (CCI) should be entrusted with the task of scrutinising pharma FDI in brownfield projects.
However, the Health Ministry has submitted a dissenting note on the report, saying that the CCI scrutiny is neither workable nor practical.
According to the Health Ministry, public health concerns on pharma FDI can only be addressed by the FIPB and it will not be possible for the health ministry to appeal in legal proceedings on pharma takeovers before the competition watchdog.
The dissent note goes on to say that seven Indian pharma companies were acquired by MNCs between 2006 and 2010 at highly unrealistic valuations.
Multinational drug giants too are unhappy with the government's move. Their main grouch is that the government's decision to bring all pharma FDI under the FIPB ambit will complicate the process.
Kewal Handa, Country Manager at Pfizer India tells CNBC-TV18 that this was not needed.
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