The Cabinet Committee on Economic Affairs (CCEA) on Tuesday overruled some Ministers to approve a $400-million foreign direct investment by KKR in Hyderabad-based Gland Pharma.

At least two Ministers wanted to know if Election Commission approval was in place to consider the proposal, said a source present at the meeting.

“After they were assured that the EC’s permission was in fact in place, these people wanted to know what the need was for the CCEA to take up the proposal at its very last meeting at the end of the UPA government’s 10-year tenure,” the source said.

“These Ministers were told that the CCEA was entitled to taking up the proposal … it was also explained that this was an ongoing work of the government, and even if the incumbent did not approve it, the next government will do it.”

Apart from the KKR deal, the Cabinet Committee on Economic Affairs (CCEA) on Tuesday ratified the sale of a 4.66 per cent government stake in Bharat Heavy Electricals Ltd., which manufactures power plant equipment, through a block deal route.

Keywords: KKRGland PharmaFDI

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