New Delhi: The government on Tuesday said it has cleared 21 foreign direct investment (FDI) proposals worth Rs 2,410 crore, including eight from the pharmaceutical sector.
The Foreign Investment Promotion Board (FIPB) in its meeting held on August 24 had approved 21 FDI proposals, which include 8 proposals worth Rs 1,842.55 crore relating FDI in brownfield pharmaceutical sector, the Finance Ministry said in a statement.
The board, headed by Department of Economic Affairs Secretary Arvind Mayaram, cleared the proposal of Pfizer Ltd for "induction of foreign equity in an operating-cum-investing company to carry out the business in pharmaceutical sector" to the tune of Rs 800 crore.
Also Sterlite Networks, Dadar and Nagar Haveli, plan to bring in FDI worth Rs 500 crore for telecom business was cleared.
Further, Mumbai based Arch Pharmalabs' proposal for inducting Rs 372 crore of foreign investment for manufacture and sale of active pharmaceutical ingredients has been approved.
FIPB also approved the proposal of The Wall Street Journal for change in the foreign collaborator by way of overseas merger within group companies.
Besides, nod was given to DB Corp to increase the foreign equity participation "to carry out the business of publication of newspapers including the business of developing, editing, publishing, printing, distributing and marketing newspapers and other publications and FM radio business," the statement said.
The statement further said the eight pharma proposals cleared by the board are subject to certain conditions. These pharma companies would be required to maintain for the next five years the quantitative level of NLEM (National List of Essential Medicines) drugs production annually at the time of induction of foreign investment.
Besides, the Research & Development expenses annually incurred 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, the statement added.
Other proposals which have been approved are those of Sutures India, Bangalore (Rs 200 crore), B Braun Singapore, Singapore (Rs 248.40 crore), Stellence Pharmscience, Bangalore (Rs 100 crore) and Zim Laboratories, Nagpur (Rs 50.44 crore).
India allows FDI in most of the sectors through automatic route, but approval of FIPB is required in certain sensitive sectors, like telecom.
FDI inflows in the country in 2011-12 was $36.50 billion.
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