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Report: India lobbies e-cigarette ban, curbing expansion of Juul, Philip Morris

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Report: India lobbies e-cigarette ban, curbing expansion of Juul, Philip Morris

Altria Group Inc.-backed Juul Labs Inc. and Philip Morris International Inc.'s expansion plans in India could remain in limbo after the country's health ministry proposed a ban on production and import of electronic cigarettes, Reuters reported Aug. 22, citing government documents.

Both companies, along with other e-cigarette makers, are already facing tough regulations in their home market of the U.S.

India's Ministry of Health and Family Welfare is reportedly pushing for the government to issue an executive order banning e-cigarettes in a bid to thwart an "epidemic" among children and the youth.

The devices have also been dubbed an epidemic in the U.S.

"E-cigarettes and similar technologies that encourage tobacco use or adversely impact public health are hazardous for an active as well as passive user. ... There is evidence that these products are a gateway to tobacco products and induce adolescents and young adults to nicotine use leading to addiction," the Indian health ministry reportedly said in its draft executive order.

The ministry is reportedly proposing a one-year jail term for first-time offenders and a fine of 100,000 Indian rupees. Repeat offenders could face up to three years in jail and up to 500,000 rupees in fine, the report said.

Reuters said the health ministry did not respond to a request for comment, while Juul and Philip Morris did not immediately respond to S&P Global Market Intelligence's requests for comment.

The news outlet reported in January that San Francisco-based Juul was planning to roll out its products in India by late 2019. Reuters also reported earlier that Philip Morris has plans to launch its iQOS heat-not-burn smoking device in India.

The newswire said in June that the Indian health ministry has asked state governments not to team up with Foundation for a Smoke-Free World because of its affiliation with Philip Morris. Reuters, which cited a letter, said the organization, whose advocacy is to eliminate the use of cigarettes, receives $80 million in annual funding from Philip Morris.

The latest report comes a day after the news outlet reported that the U.S. House of Representatives had sent letters to Juul and three other e-cigarette makers, notifying them of an investigation about the health effects of their products.

As of Aug. 22, US$1 was equivalent to 71.93 Indian rupees.