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non-USA, by Country
· India
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· JTI
· ITC
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PMO, health ministry, ITC, associations argue over the issue.
Jump to full article: Business Standard (in), 2008-10-02
Intro: A proposal by tobacco giant Japan Tobacco Inc (JTI) to raise its equity in its Indian joint venture has kicked off a major controversy with the country's largest tobacco company ITC Ltd and the health ministry opposing the move and the Prime Minister's Office (PMO) being impelled to intervene.
In June this year JTI submitted a proposal to the Foreign Investment Promotion Board (FIPB) to raise its stake in JT International (India) Ltd, which makes the Camel and Winston cigarette brands, from 50 to 74 per cent. The proposal was endorsed by the ministry of commerce and industry, which argued the policy allowed 100 per cent Foreign Direct Investment (FDI) in the sector subject to industrial licensing and the proposal was not for fresh capacity for cigarette manufacturing.
Meanwhile, the PMO, in a series of letters in July and August, has directed the department of commerce and industry to take action on points raised by the Tobacco Growers Welfare Association of Guntur, which has opposed the increase in FDI, and also instructed the Department of Economic Affairs (DEA) to give its comments on a petition by the Tobacco Institute of India (TII), which represents the interests of domestic tobacco companies and also opposed the JTI proposal.
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