FIPB, in probably its last meeting, clears Rs4,020 crore FDI in Claris Injectables
New Delhi: The Foreign Investment Promotion Board (FIPB), an inter-ministerial panel, has approved four FDI proposals, including Baxter Pharmaceutical’s equity investment of Rs4,020 crore in Claris Injectables Ltd.
Baxter Pharmaceutical (Asia) Pte Singapore had sought approval to equity investment of Rs4,020 crore in Claris Injectables by way of purchase of existing shares held by Claris Lifesciences and subscription to fresh equity shares, the finance ministry said in a statement issued on Tuesday. The FIPB in its 245th meeting held on 17 April 2017 also approved an FDI proposal of Vodafone Mobile Services. This could probably be the last meeting of the FIPB as the union cabinet earlier this month approved winding up of the board.
The FIPB, headed by economic affairs secretary Shaktikanta Das, deferred four proposals including that of Bluetown (India) Pvt Ltd and Huiyuda Technology India Pvt Ltd. Last week, the cabinet scrapped the 25-year-old FIPB as it looks to attract more FDI by providing quick approvals under a single-window clearance system. Now, the approvals would be handled independently by administrative ministries of different sectors. The FIPB was set up after India embarked on its first market reforms in 1991. It was initially constituted under the prime minister’s office and subsequently shifted under the department of economic affairs in the finance ministry.
In two previous tranches of FDI liberalisation, the BJP-led government has already ensured that more than 90% of total FDI inflows are now through the automatic route. Also, the FIPB has put in place e-filing and online processing of FDI applications. The department of industrial policy and promotion (DIPP) will also issue the standard operating procedure (SOP) for processing of applications and decision of the government under the extant FDI policy.