The Gujarat Akruti-TCG Biotech Ltd (GATB Ltd), a joint venture company of Government of Gujarat in collaboration with the Mumbai based Akruti City Ltd and The Chatterjee Group (TCG) Ltd, has entered the second phase of development of Gujarat Biotech Park (GBTP) at Savli, Vadodara.
After completing the development of basic infrastructure in an area of 90 acres, with most of the plots already sold out to major biotech companies in India and abroad, the company is currently planning to begin the construction of multi tenant wet labs (MTWL) from first week of August 2008, according to GATB Ltd officials.
The company has already commenced the marketing of second phase facility and has completed geo technological analysis of the site. "The purpose of the construction of MTWL is to enable new entrepreneur/establishment to set up their own laboratories and initiate the business activities without blocking their precious capital in land and buildings. The companies occupying space in the biotech park and whose construction is underway can hire suitable space for the shorter span," informed a GATB source. He added that the MTWL facility and space can also be hired by companies outside the park on the long term as well as short term basis.
The second phase setting up of the biotech park, in an area of 131 acres will cover fully developed land parcels, which is built to suit the plots, MTWL, service arcade which will offer office space for service providers and non - biotech residential and commercial space. With the completion of the first phase of operations, two companies - the Mumbai-based Zytex Ltd and the Vadodara-based Total Potential Cells (P) Ltd - have initiated construction works in the site.
Though GATB has been targeting the small and medium scale entrepreneurs to participate more in the biotech park venture, many major companies both from India and from overseas have shown keen interest to set up their operations in the park, informed company sources. The park is also expecting accreditation from the central government as one of the Special Economic Zones (SEZ), which will attract more players into the venture, they added.
The JV company will invest around Rs 200 crore for the second phase of project, while the first phase of basic infrastructural development was completed by state government funds. The project is expected to be completed with a total investment of Rs 2000 crore.
However, the union environment ministry has not given its approval for setting up various environment related facilities, it is learnt. The company has already submitted its documents to the ministry and the ministry has sought clarifications based on the documents. Though the GATB has submitted the clarifications to the central government, the ministry is yet to take a final decision on this, informed sources from Gujarat State Biotechnology Mission (GSBTM), which is also a promoter of the Park.
Meanwhile the GATB sources informed that the company can go ahead with the current construction works, as the environmental clearances are needed only to set up facilities like common effluent treatment plant and incinerator, which will only be initiated at a later stage.
Designed to complete in three phases, the project has been developed with the help of the credit ratings organization, Credit Rating Information Services of India Limited (CRISIL), Yes Bank, Corporation Bank and other investment advisors. The Akruti City has a major stake of more than 60 per cent in the consortium, while TCG would hold 23 per cent stake and the remaining would be held by the Gujarat government.