The proposal from the Kerala Industrial Infrastructure Development Corporation (KINFRA) to set up biotechnology parks at Ernakulam, Iddukki and Thiruvanathapuram is still to be cleared by the state government. Although KINFRA has finalized the details of the project way back in June last year and has vetted the project with the government twice, the latter has not given the green signal for the Greenfield project nor has it initiated measures to bring in the fund that would form its equity stake in the venture.

KINFRA officials told Pharmabiz.com, that the reason given to it for the delay in giving the green signal is the dismal condition of the state treasury. Further, they contended that KINFRA has not been able to work on its financial share in the project and that required from other sources or interested parties owing to the government sitting over its decision on its share of the equity stake in the project

KINFRA was supposed to promote the biotechnology park in association with the newly set up Kerala Venture Capital Fund (KVCF) that has been promoted jointly by the Kerala State Industrial Development Corporation (KSIDC), Kerala State Industrial Financial Corporation (KSIFC) and KINFRA. KVCF has a corpus fund of Rs. 20 crore and is the first such venture fund promoted in the state. KVCF evinced keen interest in the project. The state government was to take up a financial share while the remaining was to be raised by inviting interested parties in the private sector.

KINFRA has already identified the land where the biotechnology park would be established but no measures have been initiated by the Kerala government to acquire the same.

Industry analysts claim that the biotechnology parks may not materialize in the current year given the Kerala government's stringent austerity drive coupled with the delay in clearing other projects of state interest. "We do not see the biotechnology park about to happen in the coming year. The Kerala government is on the 'let's get our financial status in the black' propaganda and this could in all probability make it delay in giving the nod," an analyst claimed.

The proposed parks were to have industrial, commercial and R&D infrastructure of international class, including pre-constructed building space, developed plots and power besides water and telecom facilities. However the key feature of these parks were the thrust on commercial production activities rather than focusing only on R&D activities. The focus areas included pharmaceutical, food processing, nutrition, fermentation technology, veterinary medicine and biomedicine engineering.

Studies have shown that the state had the right mix conducive for setting up biotechnology parks. Apart from the diverse ecological strengths the huge coastline put the state in an advantageous situation for nurturing biotechnology parks.