The Kerala government is reported to have given its nod to Kerala Infrastructure Development Corporation (KINFRA) to set up two biotechnology parks instead of the earlier proposed three. According to top government sources, although the Kerala government has approved the plan in principle, KINFRA is yet to get its approval in writing. "It can be said that the project is almost through," said a top government official connected with the state industries department. No time frame has been given on when the parks would be commissioned.
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. It has also agreed in principle KINFRA's choice of having Ernst & Young as the consultant for the execution and commission of the two biotechnology parks. However, G.C. Gopal Pillai when contacted by Pharmabiz.com maintained that though the Kerala government has agreed to KINFRA's request of having Ernst & Young as the consultant it has not given in writing on the confirmation of the choice.
The biotechnology parks will come up at Menamkulam near Thiruvananthapuram on a 30 acre expanse and at Kalamassery near Ernakulam on a 40 acre expanse. According to the Gopal Pillai, the projects respectively would be executed 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. He pegged the total outlay in the first phase at Rs. 12 crore.
The acquisition of land at these two sites will be taken up shortly. However, sources did not confirm whether the same would form the Kerala government's share of equity in the project. Gopal Pillai too did not confirm as to how the funding would be done. "We are still working out the financial modalities," he told Pharmabiz.com, refraining from mentioning whether the Kerala Venture Capital Fund (KVCF) would be roped in as proposed earlier.
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.
With modalities on the changing mode, it seems difficult to pinpoint whether KVCF will be in the picture though it has evinced keen interest.
The proposed parks were to have industrial, commercial and R&D infrastructure of international class, including pre-constructed building space, developed plots and power besides water and telecom facilities. However the key feature of these parks were the thrust on commercial production activities rather than focusing only on R&D activities. The focus areas included pharmaceutical, food processing, nutrition, fermentation technology, veterinary medicine and biomedicine engineering.
Studies have shown that the state had the right mix conducive for setting up biotechnology parks. Apart from the diverse ecological strengths the huge coastline put the state in an advantageous situation for nurturing biotechnology parks.