The Department of Industrial Policy & Promotion (DIPP) may push the government to ban foreign direct investment (FDI) in India's rare & critical domestic drug manufacturing facilities, according to a government source.

A source privy to the proposal revealed that DIPP wants the government put a ban on future takeovers of rare & critical drug manufacturing facilities like oncology and injectables by foreign companies.

Speaking on the condition of anonymity, the source said, "DIPP may propose that future takeovers of rare and critical domestic drug making facilities such as oncology and injectables by multinationals be restricted."

The DIPP is also expected to propose stricter entry conditions for pharma multinationals keen to acquire a large stake in brownfield pharma firms.

A number of FDI proposals, including Mylan's more than 9,000-crore investment plans in Agila Specialities, are currently awaiting Indian government's clarity on the FDI policy on brownfield pharma sector.

Prime Minister Manmohan Singh has called a meeting on Friday after DIPP asked the government to review norms finalized by the government nearly eight months ago. Apart from Commerce & Industry Minister Anand Sharma, Health Minister Ghulam Nabi Azad and Union Finance minister P. Chidambaram are also expected to be present at the meeting.