FDI in bulk drugs raised to 74%

FDI in bulk drugs raised to 74%
ENS ECONOMIC BUREAU

NEW DELHI, JANUARY 6: The Cabinet Committee on Economic Affairs has approved the proposal for permitting foreign direct investment (FDI) upto 74 per cent in bulk drugs, their intermediaries and formulations.

The committee, in its meeting on Thursday, also approved implementation of oil palm development programme during the Ninth Plan and a scheme for assistance to dairy cooperatives.

Briefing newspersons about the decisions, an official spokesperson said investment above 74 per cent would be considered on a case by case basis in areas where investment is otherwise not forthcoming, particularly in the manufacture of bulk drugs from basic stages and their intermediaries,and bulk drugs produced by the use of recombinant DNA technology as well as the specific cell/tissue targeted formulations.

The decision to raise the limit of such investment from the present 51 per cent to 74 per cent was announced by the finance minister in his February 1999 budget speech. CCEA also approved implementation of Oil PalmDevelopment Programme (OPDP) during the Ninth Plan at an outlay of Rs 179.65 crore with a view to bringing more area under oil palm to increase edible oil availability in the country.

The scheme provides for increase in financial assistance to farmers for supply of seedlings and cultivation costs, besides assistance for training, demonstration etc. and also includes new components like diesel pumpsets for irrigation and assistance for oil palm cultivation on wastelands. A review of phasing out of subsidy would be done at the end of the Ninth Plan.

It is planned to cover an additional area of 80,000 hectares under oil palm during Ninth Plan. This area, along with an area of more than 30,000 hectares already brought under oil palm during Eighth Plan, would annually contribute about 3.30 lakh tonnes of palm oil and 0.33 lakh tonnes of palm kernel oil when the plantation achieves maturity.

CCEA also approved the proposal to sanction the "Assistance to Cooperatives" scheme as a Central Sector Plan Scheme tobe implemented during the Ninth Plan period with a proposed outlay of Rs 50 crore which would be suitably increased in consultation with the Planning Commission on the basis of actual fund utilisation.

The committee also approved guidelines for sanctioning rehabilitation package for individual milk unions and pattern of assistance on 50:50 sharing basis between the Centre and the state government for each rehabilitation package. The committee also approved the expansion of the ongoing World Bank assisted Eighth India Population Project (IPP-VIII), currently being implemented in Delhi, Calcutta, Bangalore and Hyderabad, to cover 94 additional cities.