The government is likely to set up an inter-ministerial group for the pharmaceutical sector to focus on formulating new conditions for FIPB clearance.
The new conditions that will be created by inter-ministerial group, or IMG, will address public health concerns, sources told CNBC-TV18.
The IMG will have representatives from the department of industrial policy and promotion, health ministry and department of pharmaceuticals, sources said.
The move to create the inter-ministerial group came after the Union Health Minister Ghulam Nabi Azad questioned Competition Commission of India’s jurisdiction to clear FDI in pharmaceuticals, sources said.
Sources said that FDI in greenfield projects come through automatic route while FIPB clearance is needed for brownfield projects.
In October 2011, the PM proposed that CCI would scrutinise merger and acquisition in the pharmaceutical sector.
The CCI was given six months to equip itself for the new role, sources said.