With an aim to excel in the biotechnology industry and research activities, the Government of Gujarat is planning to set up a strong basement through a strategic roadmap. The government is also expected to keep in check the progress of its proposed initiatives to propel the biotechnology industry in the state. The state government, which has come up with a biotech policy to be implemented from 2007 to 2012, is planning to introduce its vision document and strategy as a blue print for the biotech sector within one year under its biotech initiative, Gujarat State Biotechnology Mission (GSBTM).
The biotech industry of the state has witnessed a steady growth in the last six years, pursuant to the implementation of various initiatives through the Science and Technology Department under the state government. The investment in state's biotechnology sector has grown 150 per cent or Rs 300 crore to Rs 500 crore in 2006 from Rs 200 crore in 2000, according to official sources.
Around 60 per cent of the total biotech industry in Gujarat is occupied by the healthcare sector. The biotech industry in the state comprises of biotechnology companies and support organizations. The business units of diversified organizations are actively involved in the R&D, production and marketing of biotech products. The service organizations for the biotechnology industry include clinical research organizations (CRO) and suppliers, academic and R&D Institutes and government and non-governmental organizations.
The biotech sector in the state currently consists of around 40 players, who are mostly engaged in pharma biotech research and manufacturing activities. The wide range of incentives and safety offered by the state government is expected to further accelerate the growth of the biotechnology sector, noted the industry and government departments.
Government initiatives
The state government has constituted the Gujarat Council of Biotechnology, with the Chief Minister of Gujarat as its head. The council has representatives from experts, technocrats, professionals, academicians, industries and policy planners.
The GSBTM, one of the major initiatives of the government, is an autonomous body under Department of Science and Technology, Government of Gujarat. The governing body of GSBTM is headed by chief secretary of Gujarat and has representation of policy planners of various departments, industries and academia. GSBTM has become operational since April 2004, with mandates to promote, support and facilitate the overall development of Biotechnology in the state. The venture is also expected to facilitate the infrastructure development, research and innovation, human resource development, regional, national and international networking and creation of scientific awareness, socio-ethical acceptance and adoption and application of biotechnology.
An initiative of Gujarat State Biotechnology Mission, Gujarat Biotech Venture Fund (GBVF) is expected to enhance the investment in the state's biotechnology sector. Managed by Gujarat Venture Funds Limited, GBVF is a 12-year close-ended fund with around final corpus of Rs 500 million. The amount would be invested in the biotechnology companies of Gujarat. The fund has already offered Rs 50 crore for biotech projects in the state. According to GBVF, the potential areas for investment in biotechnology are:
#. Biopharma
#. Agriculture biotechnology
#. Contract Research
#. Bioinformatics
#. Industrial biotechnology
#. Marine biotechnology and
#. Environmental biotechnology.
Biotech potential
The scope of the biotech sector in the state is yet to be explored to its maximum. The GSBTM is dedicated to explore full potentials in the field. The GSBTM expects the sector to achieve a growth of Rs 1250 crore by 2012. Factors like friendly industry environment, strong developments in pharmaceutical sector, inherent agriculture strengths and rich bio-resources are expected to leverage the growth of biotechnology industry in the state.
The biotech mission plans to facilitate competitive infrastructure base for the growth and improvement of biotech products and processes through biotech clusters, biotech zones, biotech parks and sector specific facilities. "Our strategic plans are solely based on the development of the sector and to achieve our targeted growth by 2012. Once this is done, we are confident of carrying forth the growth momentum in future," said Anand Bhadalkar, Sector Specialist - Industrial Biotechnology, GSBTM.
Until 2004 the government had approved pharma related biotech projects for $105.7 million, including a $ 20 million biotech park at Vadodara and an $11.2 million Marine Biotech Park. The investment can only be considered as a beginning of a major investment boom, as more sector specific activities are in the pipeline, said officials at Science and Technology Department.
Biotech strategy
As the powerful authority of biotech industry in Gujarat, GSBTM has come up with a vision document and strategic plan to carry the state's biotech efforts forward. The Biotech policy 2007-2012, which has come out with numerous initiatives, including support for research and development, is only one among a host of steps taken by the government towards fulfilling its vision.
"We were planning to come up with a detailed strategy for the development of biotech sector. But the industry asked for some immediate action that could produce abrupt positive result, and we came up with some sops for the industry through the policy. Now, efforts would be taken to fulfill the original vision and strategy," said a source from GSBTM.
The strategic proposals for the development of biotech sector include infrastructure development, research and innovation support, human resource development, entrepreneurship promotion and biotechnology promotion projects.
The biotechnology infrastructure development project includes plans to develop a biotech park, development of incubators, sector specific infrastructure and new institutes. The research and innovation support plan includes preparation of research priorities, research action plan for different sectors, support for biotech research, establishing and supporting of COE in different sector and patent facilitation cell. The government in its recent biotech policy has extended support with a 50 per cent subsidy to the companies for applying patent.
As per the strategic plan, human resource development in biotech sector would be another area, where the government will design specific roadmap for the companies and institutions. The government will extend support to new training programme and HRD courses, specialised capsule courses, value addition and skill development programme, upgradation of biotech education and doctoral and post doctoral fellowship.
The strategy will focus on consolidation of financial incentives from GBVF to biotech industries, especially for technology facilitation, business guidance, project preparation and feasibility studies. The government will also support stakeholders' coordination and establishment of resource centre and documentation processes. The promotion of biotechnology would also be catalysed through popular lecture series, SATCOM series, conduction of state level seminars, awareness generation and information dissemination, it is learnt.
Vibrant Gujarat
The investment has increased several folds through its 'Vibrant Gujarat' industrial summit 2007, conducted in the beginning of the calendar year. The summit has seen investment initiatives of Rs 1500 crore in biotechnology. The said investment is expected to be introduced within the next three years. The summit also witnessed signing of 19 Memorandum of Understandings (MoUs) between the state biotech players and the industrialists from abroad and outside Gujarat.
"The MoUs signed through the Vibrant Gujarat summit would accelerate the growth of biotech sector in Gujarat. The final paper works on these agreements are on and we will form special purpose vehicles to carry out the projects," said Akshay Kumar Saxena, director, GSBTM.
Biotech park
The biotech park, to be set up at Savli, Vadodara has already commenced phase 2 works. The park to be built in three phases is awaiting the central government nod to start phase 1 works. The proposed biotech park will be built up in an area of 700 acres.
The government has included schemes in terms of various incentives in its biotech policy 2007-2012 to help the new biotech park projects in the state. Salient features of this package include:
#. The park will be provided with financial assistance at 50 per cent of fixed capital investments in land, buildings and infrastructure facilities (up to a maximum of Rs 250 lakhs)
#. The units coming under the industrial park will be eligible to avail incentives under the separate schemes of state government.
#. The developer of biotech park, as notified by the government, will be eligible for exemption from payment of stamp duty on purchase of land.
However, the biotech units in the said BT park will be required to pay the stamp duty at 50 per cent. Also, one who develops the industrial park, availing incentive under this scheme will not be eligible to avail incentive under any other scheme of the state government.
Management of manpower
As the state is all set to attract more industries into biotech sector, the government needs to focus on supply of adequate manpower for these industrial players. Luckily, management of manpower without challenges is one of the objectives of GSBTM.