02 January,2009 01:33 PM IST | | PTI
Pepsico India Holding need not divest 49 per cent equity in bottling firms to Indian companies, with the government today exempting it from the obligation following change in FDI rules for the food processing sector.
The exemption also prepares the ground for infusion of Rs 250 crore (USD 50 million) foreign direct investment by the beverages major in India.
The decision was taken by the Cabinet Committee of Economic Affairs as 100 per cent FDI in the food processing sector is now allowed in the country.
Earlier, when Coca cola and Pepsico came to India they were asked to mandatorily offload 49 per cent stake in Bottling firms to Indian cos in due course.
This way Pepsico will bring in USD 50 million into the country, Science and Technology Minister Kapil Sibal told reporters after the meeting.
