Ernst& Young (E&Y), the consultant chosen by the Kerala government to plan, execute and commission two biotechnology parks in the state, has impressed upon the Kerala government to speed up the process of setting up the parks lest it may lose advantage to its neighbours.
In a communication to the Kerala government, the consultant has outlined the need for speeding up the process of acquiring land for the biotechnology parks besides executing the work on the parks, besides working towards the financial closure.
E&Y has been appointed consultants by the Kerala government in principle though no written communication has been sent to it. E&Y has also pointed out that the state is very conducive to the biotechnology parks and thus the need to speed up the process. Besides, it has pointed out that if the work was not speeded up entrepreneurs and companies would start scouting for opportunities in the neighbouring states especially Tamil Nadu. The Kerala government has so far remained silent on the issue.
The Kerala government, it can be mentioned in this context, had given its nod to Kerala Infrastructure Development Corporation (KINFRA) to set up two biotechnology parks in August. The revised proposal was instead of the earlier proposal of setting up three biotechnology parks in the state. Though the Kerala government has approved the plan in principle, it is yet to give KINFRA the approval in writing.
The Kerala government, further, has also agreed in principle KINFRA's plea to have a private sector player to conceive the projects respectively at Ernakulam and Thiruvananthapuram while dropping the plan for the third proposed park at Idduki.
The biotechnology parks as per the current plan are to come up at Menamkulam near Thiruvananthapuram on a 30 acre expanse and at Kalamassery near Ernakulam on a 40 acre expanse. The parks are to be developed in two phases. A one lakh sq ft building is being planned at both the locations in the first phase while in the second phase other developmental activities giving fillip to the parks would be taken up. The total outlay in the first phase is pegged at Rs. 12 crore.
KINFRA was supposed to promote the biotechnology park in association with the newly set up KVCF promoted jointly by the Kerala State Industrial Development Corporation (KSIDC), Kerala State Industrial Financial Corporation (KSIFC) and KINFRA. KVCF has a corpus fund of Rs. 20 crore and is the first such venture fund promoted in the state. KVCF evinced keen interest in the project. The state government was to take up a financial share while the remaining was to be raised by inviting interested parties in the private sector.
The Kerala government is also to decide on its stake in the two parks. While sources claim that the land acquired for the parks would form the government's share in the equity , the same is still not concretized.