Cabinet approves proposal for increase in FDI up to $750 million in Mylan Laboratories
Updated: Nov 06, 2015 02:33:28pm
New Delhi, Nov 6 (KNN) The Union Cabinet chaired by the Prime Minister Narendra Modi on Thursday has approved the proposal of the Department of Economic Affairs for increase in foreign direct investment (FDI) up to US D 750 million in Mylan Laboratories Limited (MLL), Netherlands through subscription of equity shares or compulsorily convertible debentures.
“With this approval, FDI of US dollar 750 million will be received in the country,” said an official statement.
The approval has been subject to various conditions to be followed at the time of induction of FDI.
This includes that the production level of consumables and NLEM drugs and their supply to the domestic market at the time of induction of FDI, be maintained over the next five years at an absolute quantitative level.
It also said R&D expenses be maintained in value terms for five years at an absolute quantitative level at the time of induction of FDI.
The company receiving FDI will continue to produce medicines under the NLEM for the domestic tariff areas at the level which would be the highest quantity of production in the previous three financial years for the next five years.
The company will also be required to maintain the R&D expenditure at the maximum level incurred in any of the three financial years immediately preceding the year of induction of FDI. This absolute level should be maintained for the next five years, added the statement. (KNN Bureau)
“With this approval, FDI of US dollar 750 million will be received in the country,” said an official statement.
The approval has been subject to various conditions to be followed at the time of induction of FDI.
This includes that the production level of consumables and NLEM drugs and their supply to the domestic market at the time of induction of FDI, be maintained over the next five years at an absolute quantitative level.
It also said R&D expenses be maintained in value terms for five years at an absolute quantitative level at the time of induction of FDI.
The company receiving FDI will continue to produce medicines under the NLEM for the domestic tariff areas at the level which would be the highest quantity of production in the previous three financial years for the next five years.
The company will also be required to maintain the R&D expenditure at the maximum level incurred in any of the three financial years immediately preceding the year of induction of FDI. This absolute level should be maintained for the next five years, added the statement. (KNN Bureau)
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