Government wins FDI vote in Rajya Sabha: who said what

fdi_b_14_01_2012New Delhi: With help from Mulayam Singh Yadav and Mayawati again, the government has won a vote in the Rajya Sabha on allowing foreign supermarkets such as Wal-Mart to set up shop in India for the first time. The government had already won a vote on Foreign Direct Investment or FDI in multi-brand retail in the Lok Sabha two days earlier.harmaceutical industry today criticised the government’s decision to make it mandatory for all foreign investments in existing domestic pharma firms to be cleared by the FIPB.

Reacting against the decision, Biocon Chairman and Managing Director Kiran Mazumdar Shaw tweeted: “FIPB approval for any level of FDI in pharma sector is a retrograde step.”

harmaceutical industry today criticised the government’s decision to make it mandatory for all foreign investments in existing domestic pharma firms to be cleared by the FIPB.

Reacting against the decision, Biocon Chairman and Managing Director Kiran Mazumdar Shaw tweeted: “FIPB approval for any level of FDI in pharma sector is a retrograde step.”

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She said while the need for FIPB approval in FDI of over 49% in existing Indian companies was understandable, but not for those cases below it.

Not impressed with PM’s decision, she added.

Expressing concern over the decision, Indian Pharmaceutical Alliance Secretary General DG Shah told PTI: “This will lead to a situation where it will become less attractive for acquisitions in India.”

The government has decided that unlimited acquisitions is not beneficial for the nation, he added.

Presenting a different perspective, Organisation of Pharmaceutical Producers of India (OPPI) President Ranjit Shahani, said: “As long as there is no delay in the approvals, it is fine. A large number of projects were held back earlier. Now this condition should not be there.”

Yesterday, the government decided that all foreign investments in existing domestic pharma firms should be allowed only after clearance by the FIPB, amid mounting concerns over availability of affordable essential drugs in the wake of multinationals acquiring local companies.

The decision was taken at a high level meeting chaired by Prime Minister Manmohan Singh that was attended by Finance Minister P Chidambaram, Commerce and Industry Minister Anand Sharma and Health Minister Ghulam Nabi Azad, among others.

Any foreign company acquiring an Indian firm, which had been producing essential medicines, would have to continue to do so till the time the Competition Commission of India was empowered to vet such deals.

It is also understood that although the amendment to the Competition Act 2002 was approved by the Cabinet in October this year, the government is checking the legality of inserting new sectoral specific clauses in the Act so that the CCI could direct foreign firms to produce a specific quantity of essential medicines after acquiring an Indian company.

The issue of FDI in existing Indian pharma companies started attracting government’s attention after some foreign firms acquired big Indian companies such as Ranbaxy, Shanta Biotech and Piramal Health Care’s health unit

Also Read

Related Stories
News Now
– Only 18 cities to attract foreign investment in stores: Sibal
– Environment Minister to give global climate talks a miss
– Speaker rejects BJP, Left demand for separate debate on FEMA
– ’66 single-brand retail proposals approved by govt since 2006′
– Rajya Sabha adjourned for the day
– Retail FDI, Fema issue to be taken up together in LS
She said while the need for FIPB approval in FDI of over 49% in existing Indian companies was understandable, but not for those cases below it.

Not impressed with PM’s decision, she added.

Expressing concern over the decision, Indian Pharmaceutical Alliance Secretary General DG Shah told PTI: “This will lead to a situation where it will become less attractive for acquisitions in India.”

The government has decided that unlimited acquisitions is not beneficial for the nation, he added.

Presenting a different perspective, Organisation of Pharmaceutical Producers of India (OPPI) President Ranjit Shahani, said: “As long as there is no delay in the approvals, it is fine. A large number of projects were held back earlier. Now this condition should not be there.”

Yesterday, the government decided that all foreign investments in existing domestic pharma firms should be allowed only after clearance by the FIPB, amid mounting concerns over availability of affordable essential drugs in the wake of multinationals acquiring local companies.

The decision was taken at a high level meeting chaired by Prime Minister Manmohan Singh that was attended by Finance Minister P Chidambaram, Commerce and Industry Minister Anand Sharma and Health Minister Ghulam Nabi Azad, among others.

Any foreign company acquiring an Indian firm, which had been producing essential medicines, would have to continue to do so till the time the Competition Commission of India was empowered to vet such deals.

It is also understood that although the amendment to the Competition Act 2002 was approved by the Cabinet in October this year, the government is checking the legality of inserting new sectoral specific clauses in the Act so that the CCI could direct foreign firms to produce a specific quantity of essential medicines after acquiring an Indian company.

The issue of FDI in existing Indian pharma companies started attracting government’s attention after some foreign firms acquired big Indian companies such as Ranbaxy, Shanta Biotech and Piramal Health Care’s health unit

Here are the political reactions on the government winning the vote in Rajya Sabha:

Maybe market forces convinced Mayawati: Sitaram Yechury to NDTV
In the Upper House it (the numbers) is not convincing at all. 15 MPs who had abstained in the Lok Sabha voted here in the government’s favour in the Rajya Sabha. Why they changed their mind…that is not democracy. It is a political relation. Maybe the supremacy of the market is reigning supreme even in Parliament.
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Maybe market forces convinced Mayawati: Sitaram Yechury to NDTV
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We can go ahead on economic agenda: Kamal Nath to NDTV

We will now go ahead with our economic agenda: Kamal Nath
The government’s victory in the Lok Sabha and the Rajya Sabha opens the way for financial sector reform bills to be taken up in Parliament next week.
I was explaining to various political parties that this was a debate not on FDI. It was not on FDI because the FDI policy enables the states to avail of it. It is not being shoved down the throat of any state… I tried and explain to all political parties that please recognize the politics of BJP. In the garb of FDI they want to play politics and this has to be abhorred.

This is not a victory for the Government: Sitaram Yechury
What happened in Lok Sabha and Rajya Sabha is the same… This is not a victory of the Government.

In speeches, majority had opposed FDI: Venkaiah Naidu
If you go by the speeches made in the House by different parties overwhelming majority of the members of Rajya Sabha have opposed FDI in retail.

Derek O’Brien’s Twitter post on Rekha
A diva is nominated to Rajya Sabha & comes for 11 mins to get sworn in.Then she bunks.She next saunters in for the FDI vote.Eminent person? (sic)

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