The promoters of the Hinjewadi Biotech Park in Pune have forwarded their plan to set up a 100 per cent Export Oriented Unit (EOU) adjacent to the Hinjewadi Biotech and IT Park. It suggests the EOU to be set up at an area of more than100 acres. "As per the plan submitted EOU would be primarily targeted towards biotech, pharma and IT companies as these are Sunrise industries. However, the plan also supports entry from players outside these sectors," said Aditya P. Sethi, Senior Marketing Manager, MIDC.

According to the MIDC official, economics would be the main criteria in opting Hinjewadi as the site where the EOU will be set in. The presence of IT and BT parks would automatically make the place strategic. "The cost of land in Pune being lesser to that of Mumbai, it will be economically viable for both the government as well as industries for a Pune-based EOU. Moreover, there is no point setting up an EOU proximal to another EOU at Dronagiri in Navi Mumbai. Besides, companies in and around Pune will love to have an EOU in its proximity compared to Mumbai," he said.

The manpower charges in Pune are also considerably lower to that in Mumbai. If the government agrees on the proposal, EOU should be ready before 2005, he said.

The EOU will be in line with the Dronagiri EOU to be set up by Cidco in Navi Mumbai. It will encompass benefits for manufacturers like tax, duty and octroi waver etc.

According to biotech experts, post-2005 era will see a tighter IPR regime in the country, which will invite more players based abroad to set up their labs, manufacturing centres and offices in the country. With its tight IPR, talented and economic resources India would be the right place in the developing world for an MNC to invest its money in the knowledge sector. Naturally the upcoming biotech companies would prefer zones like the 100 per cent EOUs. According to Biocon India's Kiran Mazumdar Shaw, India will witness $4 billion biotech exports by 2007-08. And Maharashtra aims to have its share in the pie through its BT parks and IOUs. The domestic biotech sector is expected to generate employment for over 1 million scientists and engineers with an estimated business of $9 billion out of which $5 billion will be from the domestic market and $4 billion from exports during the next five years, according to experts.