Even as the Government has launched steps to revamp the existing Foreign Direct Investment policy in the pharmaceutical sector, more proposals for FDI are expected to be taken up for approval by the Foreign Investment Promotion Board (FIPB) today.

After a high-level meeting chaired by Prime Minister Manmohan Singh last week, the Commerce and Industry Ministry has already started consultations to revise the FDI policy. “The meeting of the officials from the concerned ministries will be held very soon to discuss the issue and hammer out suggestions. Whether to meet the stakeholders outside will also be decided in due course,” sources in the Commerce Department said.

The high-level meeting had entrusted the Commerce Ministry to hold consultations with the Health Ministry and Chemicals Ministry, and prepare a cabinet note on the revamping of the existing FDI policy which had attracted sharp flaks from different quarters.

One of the concerns is that if the current policy of 100 per cent FDI continues, the domestic capability will be affected and India will be dependent on the domestic facilities of the MNCs for the life-saving drugs. The concerned ministries will revisit this issue, especially in the wake of a recent comprehensive report submitted by the Parliamentary Standing Committee on Commerce which called for blanket ban on FDI in the existing companies.

The meeting took note of the concerns particularly with regard to oncology, injectibles and vaccines considering the critical need of such drugs in the country. Another key suggestion was that the proposals for FDI should be placed before the FIPB only if they are in tune with the policy.

However, the FIPB meeting scheduled for Tuesday is expected to take up six FDI proposals from the pharmaceutical sector, among the total 26 proposals listed for discussion and approval. The meeting to be headed by Economic Affairs Secretary Arvind Mayaram, will consider proposals of Jubilant Pharma, Laurus Labs, Premier Medical Corporation and three others in the pharmaceutical sector.

The FIPB is expected to clear these proposals amidst the concerns on the sliding rupee and the recent decision by the Prime Minister to clear the proposal by US-based Mylan Inc to acquire Agila Specialties. The PM had overruled the objections from the Department of Industrial Policy and Promotion (DIPP) and health ministry in the case of Mylan.