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Karnataka's Global Investors Meet gives prime importance to biotech
Nandita Vijay, Bangalore | Thursday, June 6, 2002, 08:00 Hrs  [IST]

Karnataka will give prime focus to biotechnology and allied areas. The State has opened its investment corridors for pharmaceutical industries. This was announced at the two-day Global Investors Meet (GMI) being held in Bangalore between June 5 and 6, which is a platform for the government of Karnataka to attract long-term investments.

One of the reasons for focusing on biotech sector was the wealth of talent available in pharmaceuticals in the State. Karnataka that has many firsts to its credit went on to announce the Vision group for Biotechnology, headed by Kiran Mazumdar-Shaw, chairperson Biocon India Ltd. recently, which will be followed up by the policy on biotechnology.

Although there is hardly any representation among the participants from the foreign delegates in biotechnology, the government of Karnataka is upbeat on having a long term strategy for this sector.

The State has made some inroads in this sector as it is all set to announce the opening of the biotechnology institute for the research and development at the IT Park in Whitefield, located 12 km form Bangalore.

Says Kiran Mazumdar Shaw, Karnatakas's biotech potential can benefit the pharma industry. There are many branches of biotechnology where investments can be made in various fields including bio-informatics, as information on plants is very vital for this area.

Referring to the to the availability of potential in pharmaceutical research, Prof. G. Padmanaban, former director of the Indian Institute of Science [IISc], says Bangalore is the venue for the pharma research with institutes like Astra Research center, Himalaya Drug Company, Biocon India, NIMHANS and the IISc.

With regard to herbal research labs. Prof. Padmanaban feels that Karnataka should opt for joint ventures wherein both parties can have product rights. "Assuming we develop a vaccine for a neurological disorder, the State or the Indian partner can retain the marketing rights while the other partner can hold the marketing rights for the international market.

A professor of IISc, Prof, Madhav Gadgil, opines that it is difficult to predict the amount of investments the State could gather at the GIM as the approvals to be granted by the Karnataka Drug Control department was very stringent.

According to Vivek V Kulkarni, Karnataka's information Technology secretary, who also a member of the Vision Group said Genetics and Bio-Informatics are going to be the two major thrust areas of biotechnology in the future. In fact, the former constitutes as much as 35 to 40 percent of biotechnology, while Bio-Informatics accounts for 30 percent, Kulkarni informed. "Without about 25 companies and Rs. 500 crore revenues from the biotech sector in the state, the fund can expect about Rs. 2.5 crore per annum," added Kulkarni. But he refused to divulge the quantum of investments expected in biotechnology.

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