New Delhi [India], September 13 : The Union Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved the Foreign Direct Investment proposal for the investment of up to Rs 9,589 crore in Suven Pharmaceuticals Limited by Berhyanda Limited of Cyprus.
In a statement, the government said the approval is for the acquisition of up to 76.1 per cent equity shares of Suven Pharmaceuticals. It is an Indian pharmaceutical company listed on the exchanges
“The aggregate foreign investment may increase up to 90.1 per cent in M/s Suven Pharmaceuticals Limited,” the Cabinet Committee on Economic Affairs (CCEA) said in a release.
“The proposal has been evaluated by SEBI, RBI, CCI, and other relevant agencies. The approval has been granted after examination of the proposal by Departments concerned, RBI and SEBI, and is subject to the fulfillment of all rules and regulations as applicable in this regard.”
As per the FDI Policy, 100 per cent foreign investment is allowed under automatic route in greenfield pharmaceutical projects.
In brownfield pharmaceutical projects, FDI upto 74 per cent are allowed under the automatic route and government approval is required for investment beyond 74 per cent.
Total FDI inflows in pharmaceutical sector has been Rs 43,713 crore during the last five years (from 2018-19 to 2022-23).
The Government has put in place an investor-friendly Foreign Direct Investment (FDI) Policy regime for pharmaceutical sector in order to bring in global best practices through technology, innovation and skilling for accelerated economic growth and development.
As per the extant FDI Policy, 100 pc foreign investment is allowed under automatic route in greenfield pharmaceutical projects. In brownfield pharmaceutical projects, FDI upto 74 pc are allowed under the automatic route and Government approval is required for investment beyond 74%. Total FDI inflows in pharmaceutical sector has been Rs.43,713 crore during last five years (from 2018-19 to 2022-23). The sector has witnessed significant growth in FDI of 58 pc in the last financial year.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor