With the Karnataka government's consensus in providing a fillip to biotechnology front, the sector is expected to get a much-needed boost in the forthcoming State budget this month. The State has catapul-ted its way to the top only because of its ample business-revenue driven models in pharma-biotech, bioinstrumentation, bioengineering, clinical studies, enzymes, human health vaccines, diagnostics, contract research, contract manufacture, veterinary sciences, bio-fertilisers, bio-pesticides, bioremediation and agri-biotech. The sector in the state would witness a lot of concrete developments says M K Shankaralinge Gowda, the new secretary, Department of Information Technology, Biotechnology, Science & Technology, Government of Karnataka, in an interview with Nandita Vijay of Pharmabiz.com
What are the developments expected on the biotechno-logy front in Karnataka?
As indicated in the theme for the Bangalore Bio 2004, 'Biotechnology for Billions', the State government will be concentrating on the use of biotech in the life of common man. So far, biotech has been used mostly for agriculture. While it will still be used to further increase agricultural productivity, biotech's application in pharma, healthcare and clinical research, will increase. Biotech will now extend to R&D and the issues of IPR (intellectual property rights) will be addressed. Biotech research will not end merely with the end product but issues of research process outsourcing will also be included. The focus will include crops, animal genetics, aquaculture, environment sciences, horticulture and plant biology.
What special steps do you expect the government to take to give a boost to biotech sector?
The first step is to create the Biotech Park and the government has already has in its possession 100 acres of land for it. Three concrete steps are planned to help the sector. Firstly, the biotech park must be made operational. The second move is to go in for a revised biotech policy. Right now, biotechnology covers only a limited area of operation. New developments will have to be brought under its gamut. The third step would be to encourage biotech activities through extensive national-international promotional activities and to campaign for Karnataka as an investment destination.
At this point would you be able to tell us the likely
initiatives in biotechnology by the government?
The Government can only act as a facilitator. We have provided the Park and invite firms to set up their facilities at the cluster. The park is expected to be ready in a year's time.
The biotech park has been delayed and companies are disillusioned and apprehensive about its establishment. Under the circumstances, how would the State government be able to attract biotech companies to start units in the Park?
We have 100 acres of land and the Biotech Park needs infrastructure to meet the industry's specific requirements. Biotech companies are not like manufacturing industry and therefore need specific requirements. In keeping with this, developers will be invited to create infrastructure needed specifically for the biotech industry.
What is the status biotech corpus fund?
The biotech fund was to be raised in collaboration with finance and infrastructure agencies like for instance the IL&FS and the government was supposed contribute some money similar to the KITVEN Fund in the IT sector. But looking at the availability of funds now, we intend to encourage venture capitalists to support the sector.
Do you think companies will be attracted to these projects?
There is no doubt that biotech industry would be interested in funds for expansions in research, manufacture and marketing. So for viable investments, funds are available in my opinion. There are number of venture capitalists in Bangalore. More than anything, VCs are now looking at addressing good customers. If entrepreneurs are able to convince them about the new product potential and profitability they can get the funds. Therefore, let me assert that there is no shortfall of funds. But if we allocate a specific amount for funding like for instance the erstwhile Rs 50-crore Biotech Fund it becomes a problem because the moment a number is specified, the sector is valued in terms of that sum. We also plan to have an incubation centre in the Park and funds could be arranged for start-ups.
The State government has provided considerable relief for the IT sector, now would these be extended to the biotech industry as well?
Bangalore Bio is the first initiative to recognise IT, BT and Pharma as the knowledge based industry. These are industries, which are going to thrive and flourish on knowledge. Pharma and biotech have to be interlinked and are interdependent. Our government is going to promote the pharma sector in a big way. The government will extend all relief and benefits to the sector.