Government of India has postponed the application by pharma major Pfizer to bring in foreign equity in a company, according to a PTI report. The FIPB, headed by Economic Affairs Secretary, R Gopalan had in fact, approved eight FDI proposals worth Rs 100 crore in its last meeting earlier this monty, but postponed decision on another eight, including Pfizer.
Pfizer had sought Board's approval for induction of foreign equity in an operating cum investing company to carry out the business in pharmaceutical sector. Decisions on two other proposals related with pharma sector, including that of Singapore based B Braun Singapore Pte, were deferred in the FIPB meet, noted the report.
B Braun Singapore was seeking permission for acquisition of shares of a company engaged in the business of life saving intravenous fluids and ophthalmic products, the report said. India allows FDI in most of the sector through automatic route, but applications related with certain sensitive sectors like pharmaceutical, defence and telecom, are cleared by the FIPB. Moreover, proposals worth over Rs 1,200 crore require approval of the CCEA. The next meeting of FIPB is scheduled for June 29, 2012.
