CCI to develop necessary enabling regulations for brownfield FDI in Six Months
PM chairs high level meeting
PM chaired a high level meeting to discuss the FDI policy in drugs and pharmaceutical sector. The meeting was attended by Finance Minister, Sh Pranab Mukherji, Health Minister Sh Ghulam Nabi Azad, Commerce, Industry and Textile Minister Sh Anand Sharma, Pharmaceutical and Chemical Minister Sh MK Alagiri, Deputy Chairman Planning Commission Dr Montek Singh Ahulwalia, Member Planning Commission.
The meeting deliberated upon the Maira committee report , which followed a CCEA decision to get greater clarity on the issue of FDI policy governing mergers and acquisitions in the pharmaceutical sector , while striking a balance between larger public health concerns and strengthening domestic manufacturing capacities. The meeting took the following considered decisions:
a) India will continue to allow FDI without any limits(100%) under the automatic route for Greenfield investments in the pharma sector. This will facilitate addition of manufacturing capacities, technology acquisition and development.
b) In case of brownfield investments in the pharma sector, FDI will be allowed through the FIPB approval route for a period of upto six months. During this period, necessary enabling regulations will be put in place by the CCI for effective oversight on mergers and acquisitions to ensure that there is a balance between public health concerns and attracting FDI in the pharma sector. Thereafter, the requisite oversight will be done by the CCI entirely in accordance with the competition laws of the country.