In a bid to move with the times and take the biotech sector on a growth track Karnataka government has unveiled the Millennium Biotech Policy II. The policy is a booster dose in terms of fiscal incentives, infrastructure and subsidies over its version I which was launched in 2001. The government continues much of the benefits of the Biotech Policy I which include rebate on stamp duty, entry tax, exemption from electricity duty, industrial power tariff.
The state government has made a financial commitment of around Rs 400 crore while announcing the subsidies and another Rs 200 crore with infrastructure initiatives fiscal expenditure, said Karnataka principal secretary for information technology, biotechnology and science & technology Ashok Kumar C Manoli.
A slew of incentives both fiscal and non fiscal featured include investment promotion subsidy of Rs 20 lakh. In addition, subsidy of effluent treatment plant up to 50 per cent with ceiling of Rs 5 lakh, waiver of conversion fine, interest free loans on VAT anchor unit subsidy, interest subsidy, financial support towards, patent registration, standardization, water and energy conservation. A Bio-venture fund of Rs. 50 crore is launched with professional venture capital firm. The government will have 26 per cent stake and the remaining 74 percent will come from financial institutions. A financial assistance to the tune of Rs 10 crore is coming in for setting up 10 Biotech Finishing Schools under the initiative of the Vision Group on Biotechnology will be set up with University accreditation.
A number of Biotech Parks will be set up in Tier 2/3 cities with state financial support. These include the Nutri /Nutraceutical Park at Mysore. Agri biotech Park at the Dharwad, Animal house at Bidar, Phytopharmaceutical Parka t Mysore and the Marine Park at Mangalore. Here the government has allocated the land and has identified key institutions to take it forward. For instance in Mysore CFTRI will over see the development of the Nutri /Nutraceutical Park under Dr V Prakash.
A corpus fund of Rs 20 crore has been created to facilitate grant of Rs. 20 crore for enabling commercialization of research results.
A Bio IT facility will be set up in 10,000 sq. ft. built space in the IBAB campus at the Bangalore Biotech Park at an estimated cost of Rs 23 crore.
The fiscal incentives and concessions offered under the Karnataka Industrial Policy 2009-14 will be extended to the biotech industry. Financial assistance will be extended for patent tracking and registration up to 50 per cent of registration cost which is subject to a maximum of Rs 2 lakh. This financial assistance will be given only once for each company, process and product. For seeking standardization certificate, the government will offer up to 50 percent of the expenditure incurred for a maximum of Rs 2 lakh per case.
All research labs will come under the green category and requires no more pollution control clearances.
An Animal Quarantine facility is to be set-up at Bangalore International Airport near Devahanalli.
Karnataka currently has more than 180 companies. In 2008-9, the sector grew 50 fold over its 2001 earnings of Rs 250 crore to Rs 12,137 crore. By 2012, the sector is gearing up to register Rs 50 crore.