The Cabinet on Thursday approved a proposal by Mylan Luxembourg and Mylan Group BV Netherlands to invest up to $750 million in its Indian arm Mylan Laboratories Ltd (MLL) through subscription of equity shares or compulsorily convertible debentures.
This will be used by MLL for the acquisition of the entire shareholding of Jai Pharma Ltd, “post the demerger from its then shareholders”. “With this approval, FDI of $750 million will be received in the country,” an official statement said. It added that the approval is subject to various conditions to be followed at the time of induction of FDI. This includes that the production and supply level of consumables and NLEM (National List of Essential Medicines) drugs to the domestic market should be maintained over the next five years.
It added that the R&D expenses should also be maintained in value terms for five years. “The company receiving FDI will continue to produce medicines under the NLEM for the domestic tariff areas at the level which would be the highest quantity of production in the previous three financial years for the next five years,” the statement added.
DTAC with TurkmenistanThe Cabinet also gave its nod for amending the existing double taxation avoidance convention (DTAC) between India and Turkmenistan. Besides enabling exchange of banking information, the protocol amending the DTAC also provides that the information received from Turkmenistan in respect of resident of India can be shared with other law enforcement agencies.