Representative Image.
Credit: iStock Photo
The Union Cabinet on Wednesday approved Rs 9,589 crore foreign direct investment (FDI) proposal by a Cyprus-based firm in Suven Pharmaceuticals.
As per the proposed deal, Cyprus-based Berhyanda Limited will acquire 76.1 per cent equity shares of Hyderabad-headquartered Suven Pharmaceuticals Limited. With the new deal, the aggregate foreign investment in Suven Pharmaceuticals will increase to 90.1 per cent.
“The approved investment aims to generate new jobs, capacity expansion of the Indian company through investments in plant and equipment,” as per an official statement released after the cabinet meeting.
Upto 100 per cent foreign investment is allowed under automatic route in greenfield pharmaceutical projects, while in the case of brownfield pharmaceutical projects, FDI upto 74 per cent are allowed under the automatic route and Government approval is required for investment beyond 74 per cent. In the last five years (from 2018-19 to 2022-23), FDI inflows in the pharmaceutical sector stood at Rs 43,713 crore.
Subsidy for LPG connections
Meanwhile, the cabinet chaired by Prime Minister Narendra Modi also gave the nod to allocate Rs 1,650 crore subsidy to oil marketing companies for issuing 75 lakh new LPG connections to women under Pradhan Mantri Ujjwala Yojana over the next three years from 2023-24 to 2025-26.
With these new connections, the overall count of Ujjwala Yojana beneficiaries will increase to 10.35 crore.
Under the Pradhan Mantri Ujjwala Yojana, which was launched in May 2016, the government provides 14.2 kg LPG cylinder to women of below poverty line (BPL) families free of cost. A targeted subsidy of Rs 200 per cylinder for upto 12 refills per year is also provided to such beneficiaries.