Clears Glenmark, Aurobindo proposals
The Cabinet Committee on Economic Affairs (CCEA) has approved the four-laning of the Sultanpur-Varanasi section of National Highway-56 in Uttar Pradesh. This will substantially upgrade Varanasi’s connectivity to Lucknow and other parts of Central UP. The project will cost around Rs 3,800 crore on this 138 kilometer long stretch of the Highway. The CCEA also gave its approval to the four laning of the Varanasi to Ghazipur, Gorakhpur and further to Nepal section of National Highway-29 in the state.
This is likely to improve regional connectivity and facilitate improved movement of people and goods in the region and across the border. The four laning of this 200 kilometer will have a cost of around Rs 4,400 crore. In an another decision, the CCEA gave its nod to the four laning of the Madurai-Ramanathapuram section of National Highway – 49 in Tamil Nadu.
The project will cost approximately Rs 1,400 crore. The CCEA also approved two significant foreign investments in the pharmaceutical sector, leading to investment worth rupees Rs 4,187 crore in Aurobindo Pharma and Glenmark Pharmaceuticals limited. Aurobindo Pharma, which is engaged in manufacturing generic pharmaceuticals and active pharma ingredients, has been given the nod for qualified institutional buyers to infuse fresh equity of up to seven per cent amounting to about Rs 2,165 crore into the company.
The existing foreign institutional investment (FII) shareholding in Aurobindo is at 27.32 per cent. This will enable the company to expand its operations in the areas of anti infective, cardiovascular and central nervous system related ingredients.
Glenmark Pharmaceuticals has been given the nod for increasing the foreign investment limit by FIIs from 35.07 per cent to 49 per cent. This will result in an inflow of about Rs 2,022 crore.
Apart from manufacturing pharmaceuticals, the company is also engaged in Research and Development activities in drugs.