The Hindu Business Line : E&Y to identify joint venture partner for Gujarat biotech park

THE Gujarat Government has decided to induct a private company for its proposed biotechnology park near Baroda and appointed consultancy firm Ernst and Young (E&Y) to help it identify the joint venture partner.

"We have recently appointed Ernst and Young to help us find a private sector partner who would not only take up an equity stake in the Rs 54-crore venture, but also attract other companies to the facility," says the Gujarat State Biotechnology Mission Director, Mr Akshay Kumar Saxena.

The State Government hopes to locate the private partner for the Rs 54-crore biotech park by March this year and resume work at the earliest, Mr Saxena told Business Line.

The Union Government has committed Rs 15 crore for the proposed biotech park while the State Government will chip in with Rs 27 crore. The private partner will be expected to contribute the rest.

"Ernst and Young is helping us prepare the documentation for the joint venture. At least four companies have evinced interest in getting associated with the project and we hope to have a partner on board in the next three months," Mr Saxena said, adding that the park should be operational by the end of financial year 2005-06.

The State Government has already acquired 40 hectares of land for the first phase of the park and another 200 hectares land is available for future expansion. Basic infrastructure such as roads, power facilities and a common effluent part are already in an advanced stage of construction, he said.

Mr Saxena admitted that the proposed park was running behind schedule. "We wanted to be sure of the model that we should adopt. Now that there is clarity regarding that, we hope that things will speed up, especially after the private partner is inducted," he said.

The Biotechnology Mission is also simultaneously working on a biotech park incentive scheme for the State. While the policy is still under formulation, the Gujarat Government is likely to emulate the Software Technology Parks of India (STPI) scheme and grant biotech park status to research facilities of companies who wish to avail benefits under the scheme.

"The Mission's role is coordination and facilitation. We hope to be the single-point interface between the Government machinery and industry. Our role would include advising the Government and helping the industry obtain different clearances that may be required," Mr Saxena said.

As part of its efforts to carve a niche for itself in the biotech sector, Gujarat is actively seeking to attract the private sector and build on the advantage of having a large number of pharmaceutical companies located in the State.

The Chief Minister, Mr Narendra Modi, loves to say, "if IT is India Today, BT is Bharat Tomorrow. We are identifying focus areas within biotechnology for the State. Pharmaceuticals is a natural choice. The other sub-sectors could include marine, agriculture and food," Mr Saxena said.

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