Looking at the emerging opportunities in the era of knowledge-based industries, the government of Maharashtra, has identified biotechnology as one of the core areas where the state should focus in the future. The state, which has always been in the forefront in taking advantages of the advances in science and technology as great opportunities for bringing about economic transformation and social change, has come out with a host of new initiatives in the recently announced "Biotechnology Policy 2001".
Biotechnology, which deals with living systems, including plants, animals and microbes, derives its strength by harnessing biological processes that sustain life. It incorporates any technique, which uses living organisms, parts of organisms and enzymes, proteins, etc., which are either naturally occurring or are derived from such living systems. Such techniques can be used to make or modify the products, improve plant or animal productivity or develop microorganisms for special use. Emerging biotechnology uses recombinant DNA, cell fusion, embryo manipulation, etc.
The government''s BT Policy paper stresses that it has the potential to transform the lives of the people in the State by impacting hugely on agriculture, animal husbandry, health, environmental protection, material transformation, etc. Further, Maharashtra has the potential to become a leader in biotechnology, not only in the country but also in the entire world.
Advantages of Maharashtra
The State derives its confidence that it will be a leader in biotechnology based on its diverse strengths. These strengths include its superior human resource, the excellence of its private and public institutions, the superb infrastructure, and a conducive business environment as well as the inherent strength of its industry. Equally important is the progressive and proactive government which is prepared to go that ''extra mile'' to make things happen. This confidence is not merely based on its potential, but on its proven performance.
Currently, the State produces around one-fifth of national industrial output and accounts for 30% of exports (including in knowledge-based industries such as electronics and IT products, drugs and pharma, etc.). It has 22% of the new Company registrations. It accounts for 30% of the patents filed from India. It is one of the most urbanised States, with a per capita income that is 1.5 times the national average. It has registered 7% growth per annum in the last decade. The investor confidence is the highest for Maharashtra with $ 12 billion in terms of Foreign Direct Investment approvals and proposed industrial investment of Rupees 220,000 crore, both in the last ten years, the highest in the country. Its success rate of implementation of projects is also the highest among major states.
Since Mumbai is the financial capital of India, it can always be the hub of the country''s financial services sector. Technology financing mechanisms and institutions in Maharashtra are some of the strongest in India at present. The presence of venture capital companies such as ICICI, Rabo Bank, etc. provides the much needed support in technology financing and development as well.
This overall confidence in the strength of the State gets easily reflected and translated into a ''biotech advantage''. In fact, the biotech foundations in Maharashtra go back a long way. The Haffkine Institute, established in 1899, is the oldest biotech institution in Maharashtra. In 1954, Pune created a landmark in Biotechnology bybecoming the first city in India to have an industry producing Penicillin, the Hindustan Antibiotics Ltd. The plant was then the largest producer of Penicillin in the whole of Asia. The vaccines produced by Serum Institute of India Ltd, the foremost and the largest manufacturer of vaccines, sera and biologicals in India, reach every one out of four children in the world! The Venkateshwara Hatcheries group is the largest producer of poultry vaccines in India
Maharashtra has the strength tomakeitthe''most preferred destination'' for the pharmaceutical industry, and to attract and accelerate investment in Drugs and Pharmaceuticals. The State at present contributes about 40% of the total turnover. It has 4,100 registered pharmaceutical manufacturers out of the total of 20,053 in India. Most international companies have shown their preference for Maharashtra. These include, among others, GlaxoSmithKline, Novartis, Pfizer, Johnson & Johnson, Abbott, Aventis, Knoll, and many others.
Major Indian companies such as Wockhardt, Cipla, Lupin, Nicholas Piramal, etc. do not only have their presence in Maharashtra, but they are also marching forward in the most challenging and frontline areas of Biotechnology. Wockhardt is already entering biopharmaceuticals. Whereas Lupin and Nicholas Piramal are moving in a major way in innovative drug research, the latter have made major forays in pharmacogenomics. Reliance Life Sciences have made forays into stem cell research and have already been recognized as one of the key suppliers of cell lines by the US government.
The State has an excellent intellectual infrastructure, the government''s Policy paper states.Through nearly 1000 institutions, it produces around 163,000 trained technical personnel each year. The State has already set up specialised parks for different sections including IT. The bio-industrial enterprises cannot sustain themselves unless they are backed up by a highly trained and skilled human resource. Some of the best Centres of excellence in India that are present in Maharashtra do precisely that. These include the Bhabha Atomic Research Centre, Indian Institute of Technology, Tata Institute of Fundamental Research, University Department of Chemical Technology, and the Cancer Research Institute, all at Mumbai. They also include several life science and Biotechnology based departments of the University of Pune, National Centre for Cell Science, National Institute of Virology, National Chemical Laboratory, National Aids Research Institute, Agharkar Research Institute, Bharati Vidyapeeth''s Institute of Environment Education & Research and the Rajiv Gandhi Institute of Information Technology & Biotechnology, the Vasant Dada Sugar Institute, all at Pune, as also the National Envi-ronmental Engineering Research Institute at Nagpur.
The Animal Diseases Investigations Laboratory, Pune involved in diagnosis and research of animal diseases, especially in four States of the Western region of the country, has been recognised as reference laboratory by Government of India. New forward-looking initiatives in providing specialized education in Bio-technology, such as by the Vidya Pratisthan''s School in Biotechnology, have already begun to emerge. A number of defence research establishments in the State have been engaged in conducting cutting edge research in Biomedicals, Bioinformatics and Biotechnology.research requires a chain of hospitals and clinics which could establish clinical research organizations. Some of the best hospitals in India are located in Maharashtra, giving that extra support and impetus.
The Biotech Policy 2001 promises that in order to lead the biotechnology industry in the State to a growth path from where it can become globally competitive, the government would provide the appropriate policy framework, which will smoothen its path, adequate infrastructure, especially in the form of biotechnology parks and an appropriate package of incentives.
With a world-class higher education and research base to serve the needs of a growing Biotechnology industry and for creating high quality employment in the State, it can also create supporting institutions for the Biotechnology industry for the development of human resource as well as for the applications of Biotechnology. Besides, bysimplifying the application of labour and other laws and procedures to accelerate the development and growth of the biotechnology industry, the state expects to facilitate new ventures and innovations.
Strategic Initiatives:
Institutional Mechanisms:The State realises that it requires a robust implementation strategy to fructify its vision to be a leading Biotech State. Therefore, the State Government will take tangible and firm steps to realize the ambitious goals. Towards this, two apex institutions will be created. The first will be the Maharashtra Biotechnology Board, and the second will be the Maharashtra Biotechnology Commission. These will be backed up by a Biotechnology Development Fund.
State as an Enabler and a Facilitator: The State specifically intends to facilitate for the farmers the provision of high yielding and drought and pest resistant varieties of crops that are genetically modified to thrive in the prevalent agro-climatic conditions. Crops where such biotechnological interventions can yield beneficial results will be identified. Taluka-level seed farms, farms of the Agricultural Universities and lands in the Maharashtra Industrial Development Corporation (MIDC) areas will be made available to Biotechnology units so that field trials and seed multiplication of approved varieties can be undertaken. It will be ensured that all laws of the land and regulations will be followed so that a ''responsible Biotechnology'' will be promoted in the State.
Biotechnology companies located in the State will be permitted to acquire and own agricultural lands in excess of the current ceiling limits provided they are being specifically utilized for experimentation and field trials, which are a logical part of the research and development chain.
The State has a vast public health machinery and therefore invaluable data at its command. It will share these data with the Biotechnology companies in a transparent and ethical manner. The public health machinery of the State will also actively collaborate with Biotechnology companies in clinical research by following internationally accepted norms.
Maharashtra''s Food and Drug Administration (FDA) is one of the most progressive and competent in the country. The FDA will play a facilitating role in the growth and development of pharmaceutical and food processing Biotechnology industry. Several vaccine-producing units are in the State-controlled public sector. These will serve as valuable allies to the Biotechnology industry. Similar measures will be taken for the livestock and fishery industries also.
In pursuance of its new Industrial Policy 2001, the State has declared its intention to amend certain provisions of the Industrial Disputes Act and the Contract Labour Act, subject to the approval of the Central Government (since these are Central laws) and the Legislature. The amendments would apply to Biotechnology units covered under these Acts. Moreover, in the case of Biotechnology units within the purview of the Shops and Establishments Act, restrictions on shift working, working hours and employment of women would be relaxed, as has been done in respect of Information Technology units.
Financial Incentives
Government will make the industrial power tariff applicable to all Biotechnology industries engaged in the production of high-end products. This benefit will be applicable to both new and old companies. Additionally, agricultural Biotechnology companies will be given power at agricultural rates. All Biotechnological industries will be exempted from statutory power cuts.
Biotechnology units will be exempted from paying electricity duty. Captive power generation will be permitted to Biotechnology units throughout the State. Public bodies or their joint ventures will be permitted to establish ''Independent Power Producers'' for the dedicated provision of power to Biotechnology Parks promoted by them.
Sales tax/value added tax on Biotechnology products would be decided as per recommendations of the empowered committee at the national level. A methodology to define Biotechnology products would be evolved. Definition of Biotechnology products would be decided by the Central Government or it would be finalised in consultation with the Task Force appointed by the State Government.
Biotechnology units through-out the State will be eligible for all the benefits available to industrial units located in ''D'' areas of the State under the New Package Scheme of Incentives, 2001, except in the D+ and ''No Industry District'' areas, where such units will be eligible for benefits in the D+ and ''No Industry District'' areas. These include capital subsidy for small-scale Biotechnology units, and refund of octroi and similar levies.
New Biotechnology units, and expansions of existing units, will be exempted from payment of Stamp Duty and Registration fees in C, D, D+ and No Industry Zones in terms of Package Scheme of Incentives, 2001 of the State. In other areas, such exemption will be extended to units in Biotechnology Parks promoted by public bodies. In private Parks, such Stamp Duty and Registration fees would be waived to the extent of 50%. In addition, only 10% of the admissible Stamp Duty would be payable on property transactions resulting from amalgamation of Biotechnology companies.
Twice the admissible Floor Space Index would be admissible for Biotechnology units in Parks promoted by MIDC and other public bodies, and at other designated locations.
Information Technology and Biotechnology are fuelled by continuous generation and advancement of new knowledge. Therefore, the locations of all such undertakings will be treated as ''Knowledge Processing Zones'' and will be given special privileges. For example, Information Technology undertakings have already been enjoying certain privileges in view of their special status. The Government recognises that the role of bioinformatics centres, which symbolize the confluence of Biotechnology and Information Technology, is crucial to the development and sustenance of the Biotechnology industry. Therefore, all such centres will also be treated on par with Information Technology units, and all the incentives applicable to Information Technology units will be extended to these centres.
Collaboration between research scientists, industry personnel, etc will make for wider dissemination and better understanding of the costs and benefits of Biotechnology.