The Union government has decided to set up a Stem Cell Institute of India in Bangalore, first of its kind initiative in the country. Investment for the project is estimated to be about Rs 100 crore and it is going to be a totally central government funded venture.

The first phase of the project, will see an infusion of Rs 30 crore. The project is expected to be commission within 18 months from the date of commencement of work. Other details are withheld as the project is presently under clearance from the Planning Commission. However, the project would expect to commence construction any time in FY 2007-08.

The Karnataka government has provided 10 acres of land as its equity stake for the state-of-the-art facility. The project envisaged by the Department of Biotechnology and is going to come up in Bangalore next to the National Centre for Biological Sciences (NCBS) in the University of Agricultural Science located in the Gandhi Krishi Vignana Kendra campus at Hebbal in Bangalore, MN Vidyashankar, IAS, secretary, department of Information Technology, Biotechnology and Science and Technology, Government of Karnataka, told Pharmabiz.

The NCBS is a subsidiary of the Mumbai-based Tata Institute of Fundamental Research [TIFR], which had been identified by the National Institute of Health [NIH], US in 2001 as suppliers of embryonic stem cells to scientists seeking US funding. NCBS had acknowledged the possession of stem cells and that all collaborations will be subject to Department of Biotechnology guidelines and other government rules. It was in possession of at least three potential stem cell lines, which had been collected from frozen embroyos with prior informed consent from the donor patients. But not much has taken off after that.

The Stem Cell Institute of India is expected to provide both training and stem cell based research services. Current, initiatives in stem cell for treatment are taking place at Hospitals which include Manipal Hospital, CMC Vellore and Hyderabad's LV Prasad Eye Institute.

The Indian Council of Medical Research (ICMR) and the department of Biotechnology government of India are aggressively working towards the approval of the stem cell guidelines which is expected to become a law and be ready for implementation by the stem cell companies in the next few weeks.

The National Task Force on Stem Cells has mandated a separate set of rules to monitor the use of stem cells which is showing favourable disease control in the case of myocardial infraction and leg ischemia.

According to Dr D Balasubramanian, director of research at LV Prasad Eye Institute of India, who is also the chairman of the National Task Force and the president of the Stem Cell Research Forum of India, there has been an increasing activity in the country in the area of stem cell research in both public and private sectors. The Union government's initiatives in developing stem cell research reflect a growing worldwide trend in this field.

The Union government under the 11th Five Year Plan is expected to allocate a 300 per cent hike in the budget allocation for stem cell research, informed Alok Srivastava, professor and head of the department of hematology, CMC Vellore and project director, stem cell research.

Leading stem cell companies in the country are Stempeutics, part of Manipal Group in Bangalore and Reliance Life Sciences in Mumbai.

Present global market size for stem cell is around $540 bn and growing at 15 per cent. By 2010, the Indian market for stem cell therapies is expected to touch $20 bn. The most beneficial therapies with stem cells will be myocardial infraction and leg ischemia. Studies are at advanced stages for using stem cell in the spinal chord and cancer treatment.