The Government of Andhra Pradesh is committed to harness the benefits of biotechnology in order to make a positive contribution to the life of the common man. In this direction, the state government has consistently pursued proactive policies and undertaken several initiatives to support and promote the biotechnology sector in the state, says, Dr A Ashok (IAS), director of Biotechnology, Government of Andhra Pradesh.

In an exclusive interview with YV Phani Raj, Pharmabiz, Dr Ashok explains the progress the AP has made in various fields concerning the biotech sector. Excerpts:

The national biotech policy is going to be in place soon. Is Andhra Pradesh Government planning to amend its biotech policy?

Since drafting the State Biotech Policy in 2001, the sector has witnessed significant growth in terms of attaining critical mass and infrastructure development, which was a result of the perennial and combined efforts of the government, the industry and the academia in the State. The policy has provided -- single window clearance system, sales tax of one per cent, provision of rebate based on the employment opportunity created and capital subsidy of 25 per cent of the total project cost is offered to those companies that are setting up biotech related infrastructure in the state.

In order to support the various initiatives being undertaken in the state, the government proposes to redraft the State Biotech Policy and introduce positive changes that would enable an investor friendly environment.

What has been the progress made in the ICICI Knowledge Park?

Genome Valley, the country's first biotechnology and pharmaceutical cluster has been one of the earliest initiatives of the state government. This cluster houses ICICI Knowledge Park, a world class centre for leading edge business driven research and is India's first such venture created in collaboration between research community and industry. During the phase I, about 10 laboratories had been operational from June 2000. In the second phase, 100 per cent laboratory space has been booked by seven companies. In the phase III, about 20,000 sq. ft of modular wet laboratory space is being developed. A Life Sciences Incubation Centre has been set up in the park with an investment of Rs 3 crore with eight labs, of which four will be exclusively for biotech and the remaining labs will be for chemistry.

What is the current status of the Shapoorji Pallonji Biotech Park?

The SP Biotech Park, a one billion rupee project, has recorded occupation of over 75 per cent of the space in the first phase covering over 140 acres. During the phase I, about 14 companies have occupied space. Of these, KCP Biotech has commissioned its facility and Vimta Labs has started the construction of its facility. In the phase II, covering 100 acres, Biological Evans has acquired 50 acres and is constructing a production facility and Shantha Biotech is in the process of setting up its facility. The developers are planning to establish ready to occupy R&D labs for biotechnology and pharmaceutical companies.

Can you tell us about the international companies that have set up base in the Genome Valley?

Many overseas companies have shown interest to set up base in and around Hyderabad. Few companies have already set up their base. For instance, Taros Custom Chemicals, Germany, involved in providing research services to pharma and biotech companies has established its R&D facility in ICICI Knowledge Park. Ireland-based Chanelle Pharmaceuticals, focused on R & D, registration and sale of generic dossiers, contract manufacturing and packaging of human therapeutics and veterinary drugs is in the process of starting its operations soon at Hyderabad. NND Biomedical Data Systems and Albany Molecular Research, both from USA have evinced keen interest on Hyderabad.

What has been the achievement of APIDC Venture Capital Biotech Fund so far?

The Fund has been established with a corpus of Rs 1.5 billion. APIDC has already funded three biotech companies that include Bioserve Biotechnologies, Genomik Design Pharma and Silico Insights with an investment of US $ 5,40,000 each.

What progress has been made in the incubation centre? Whom will it benefit most?

The Department of Biotechnology (DBT) and Government of Andhra Pradesh in technical collaboration with the Indian Institute of Chemical Technology are setting up the Biotechnology Incubation Centre, the country's first biotech incubator. DBT has already sanctioned Rs. 20 crore. Three acres has been earmarked for this purpose. Major equipment have already been ordered. Three project management committee meetings have been held so far to review the progress of the project. The incubation fund is aimed at promoting start-up companies to scale up their production and to commercialise their products.

Bioinformatics is gaining lot of attention these days? What has the State achieved in this area so far? Could any alliances take place in this sector?

Sun Microsystems, Government of Andhra Pradesh and the Centre for DNA and Fingerprinting (CDFD), a year ago have signed a MoU for setting up a Rs 30 crore Centre of Excellence (CoE) in Bioinformatics. The CoE is the third such centre in Asia, having collaboration with Sun. The Centre is expected to be operational very soon. Companies like TCS, Ocimum, Satyam, BioMed Informatics are the key drivers of this sector in the State.

How has been the response for Marine Biotech Park, being developed at Parawada, near Visakhapatnam?

The State Government has set up India's first Marine Biotech Park near Visakhapatnam. The Park is spread across 218 acres. Companies such as Biogenus and Celgen have already been allotted the required land. A Marine Biotech Complex is also proposed in the park, being developed in support with the Andhra University. The Complex would focus on marine resources and would work towards developing vaccines to prevent diseases to shrimp and other marine organisms, apart from research on nutraceuticals, marine foods etc. Ernst & Young has been roped in to the study the techno-feasibility of the project.

What role will BioAsia 2005 play in strengthening the biotech industry?

It will offer unique opportunities to Indian and international decision makers in biotech, pharma and allied industries to facilitate collaborations, showcase products or services and network with industry leaders and research scientists. It is an ideal forum to address a global audience, which is largely incognizant of Asia's world-class technological infrastructure, scientific capabilities and innovative science.

What are the other Biotech initiatives of AP?

As part of Government's initiative, the Institute of Life Sciences is being set up in Hyderabad. The Institute is being established in an area of 30 acres. A Director for the institute is to be appointed soon. State Government has already granted Rs 1 crore for this initiative, and a proposal for funding Rs 9 crore more is being reviewed. The Institute is likely to be ready by early 2007. Dr Reddy's has already funded Rs 10 crore towards setting up the institute, which is to cost Rs 100 crore. Investment from entrepreneurs is anticipated. DBT and UGC will be playing a key role in the establishment of this institution.

A national animal resource facility in partnership with Indian Council for Medical Research (ICMR) and the National Institute of Nutrition (NIN) is to be established in 102 acres of land. The land has already been earmarked. The facility is to assist in attracting drug discovery companies to the State.

Various models to establish and operate this facility are currently worked out. The most economically viable and sustainable model will be chosen. Both ICMR and DBT may fund about Rs 15 crore together.

The state government has also mooted a proposal to set up a 'Life City', a township exclusively meant for biotech professionals.