The Union Government of India, in the first week of August 2013, cleared 12 FDI proposals worth 343 crore rupees. In the meanwhile, it did not give approval to the US-based Mylan Inc's proposal for acquiring the Indian Pharma company. The decision on Mylan was kept on hold.
The approval was given by the Union Government based on the recommendations of Foreign Investment Promotion Board (FIPB) on 5 July 2013. 12 proposals amounting to 343.39 crore Rupees were approved.
However, The Government kept the decision on Mylan Inc’s 5168 crore Rupees proposal for acquiring Agila Specialities Pvt Ltd -- a subsidiary of pharma firm Strides Arcolabm, in abeyance. The decision on Mylan was kept on hold till formulation of revised FDI policy by the Department of Industrial Policy and Promotion (DIPP).
DIPP is working on finalising the FDI policy on the brown field pharma projects, where the transfer of control is involved.
As per the Share Purchase Agreement, Mylan decided to acquire overall issue as well as outstanding share capital of Agila Specialities Pvt Ltd. Agila would be acquired by Mylan either directly or through one of the subsidiaries.
Mylan and Strides Acrolab entered into the agreement in February 2013.
Out of the 12 FDI proposals cleared by FIPB, some of these include Sutures (I) Pvt Ltd to increase FDI holding in the company by additional 26 percent, from 35.28 percent at present. This is worth 160 crore Rupees. Apart from this, other proposal includes that of BNP Paribas, Total Prosthetics & Onthotics, Imperial Cancer Hospital and Research, and Life Positive Pvt Ltd.
In the meeting, FIPB deferred 4 proposals while rejected three. 6 proposals were kept in abeyance which also include Franklin Templeton Asset Management’s proposal for setting up Alternative Investment Fund (AIF) in India.