Biotechnology major, Biocon has received a Special Economic Zone (SEZ) status for its Biocon Park located Bommasandra in the outskirts of Bangalore. The Rs. 650 crore Biocon Park located on a 90-acre plot was approved by the Centre recently. This will be first SEZ in the private sector for biotechnology.
The Centre passed SEZ Act last month. At the end of 2004 the department of biotechnology, Government of India was making efforts to ensure that the companies located in biotechnology parks would be able to avail all the benefits enjoyed by units in the SEZs. In addition the companies are also exempted from import license and registration rules. The SEZ status will provide the tax relief for Biocon. The facility will be entitled to total tax breaks for the next five years and 50 per cent benefit for the subsequent five years.
The Biocon Park currently houses Syngene, its contract research subsidiary, Biocon Bio Pharmaceuticals and the state-of-the-art fermentation facility. While Syngene is already operational, the other two are getting ready to be commissioned in mid-2006, stated Kiran Mazumdar-Shaw, chairman and managing director Biocon Limited.
Biocon Biopharmaceuticals, the subsidiary of Biocon Limited set up a joint venture initiative with the Centre for Molecular Immunology, a Cuban-based monoclonal antibody and cell culture technology major to extend its product portfolio with two additional monoclonal antibodies (MABs) and three cancer vaccines.
The fermentation facility is already known for its Plafractor technology, which is the world’s first indigenously developed patent on fermentation of solid state and submerged fermentation delivering high productivity at low operational cost.
A key trend today is to set-up product specific SEZs. In this connection, the pharma and biotech companies are making efforts to seek SEZ status for its facility located in industrial zones and Ranbaxy is the next in the pipeline followed by Ramky group, developers of the Pharma City near Vizag, which is making efforts to establish a pharma SEZ inside the Pharma City.
Meanwhile the Karnataka government has also made efforts to set up a second Special Economic Zone (SEZ) at Hassan for a multi industry zone. Among the industries slated to set base here include Strides Arcolab in the pharma sector which is establishing a bulk drug facility at an investment of Rs. 48 crore and expected to employ 180 people. UK-based Vitabiotics’ Indian subsidiary located at Mumbai will invest Rs. 19.70 crore for starting a formulation facility, which is expected to offer 356 jobs.