Govt approves Mylan’s FDI proposal worth $750 million
The government on Thursday approved the FDI proposal of Mylan’s Luxembourg and the Netherlands units to invest up to $750 million in its Bangalore-based Mylan Laboratories Ltd. (MLL) through subscription of equity shares. “With this approval, FDI of $750 million will be received in the country. The production level of consumables and NLEM drugs and their supply to the domestic market at the time of induction of FDI, be maintained over the next five years at an absolute quantitative level,” Ministry of Finance said in a statement. The union cabinet chaired by the Prime Minister Narendra Modi, however, laid out some conditions and directed MLL to be transparent in terms of its operations, especially in transfer of technology and the R&D expenditure for the next five years. As part of the condition, the government instructed MLL to manufacture medicines under the NLEM (National List of Essential Medicines) at the highest quantity of production in the first three financial years for the next five years. The government also said that any tax relief claimed by the company will be examined to determine the eligibility and extent of any such relief. “The fair market value of various payments, services, assets, shares etc. determined in accordance with FIPB guidelines shall be examined by the tax authorities under the tax laws and rules in force and may be varied accordingly for tax purpose,” said the ministry. Established in 1961, MLL is now manufacturing and marketing over 1,400 drugs to retail, wholesale and government customers across the world.
November 06, 2015 | 6:13pm IST.