Andhra Pradesh government has earmarked about 400 acres to develop a special economic zone for biotechnology industry. With the growing demand for organized infrastructure and increasing focus on regulated and overseas markets, such special economic zones can boost industry to new heights.

Andhra Pradesh has been a major contender to biotech driven states such as Karnataka and Maharashtra. AP has been one of the front-runners in this knowledge-driven industry and has already created infrastructure in the form of two industrial parks, Shapoorji Pallonji Biotech Park and ICICI Knowledge Park, both near Hyderabad.

Shapoorji Pallonji (SP) Biotech Park is one of the first biotech parks in India developed on a Public Private Partnership model. The Park has been established with an objective to provide a platform, for pursuing technological innovation within the knowledge-based biotechnology enterprises.

Some of the key tenants of the Park include Biological-E, Sami labs, Vimta Labs, KCP Biotech Ltd., Tata Chemicals Ltd., etc.

The SP Park has collaborations with several research and academic institutions such as Indian Institute of Chemical Technology (IICT), Centre for Cellular and Molecular Biology (CCMB), Centre for DNA FingerPrinting & Diagnostics (CDFD) and University of Hyderabad. It is also a member of the International Association of Science Parks, Biotechnology Industry Organisation, USA, etc. The Government of Andhra Pradesh is in the process of earmarking additional land for Phase-III of the Biotech Park.

Some of the major tenants of the ICICI Knowledge Park include Matrix Laboratories, Krebs Biochemicals, GVK Biosciences, Anu's Laboratories, Indigene Pharmaceuticals, Medikon Galenicals, EPR Pharmaceuticals Ltd, Albany Molecular Research Inc., etc.

AP is also setting up a biotech incubation centre (BTIC) at Shapoorji Pallonji Biotech Park in support with the Department of Biotechnology (DBT) Indian Institute of Chemical Technology (IICT). It is expected to be operational by mid 2006. The BTIC proposes to set up a research & analytical laboratory, multipurpose and specialised pilot plant facilities, and service centres for providing administrative, human resource development, information services, and material storage & utility support systems to the tenants as well as the industry, at large.