The Hindu Business Line : TN to consider IL&FS plan for bio-tech cos

THE Tamil Nadu Government is considering a proposal by IL&FS, the infrastructure company, to provide integrated facilities - spanning research and development, upscaling and commercialisation - for biotechnology companies.

According to sources, the project envisages incorporating Ticel Bio Park Ltd, the R&D infrastructure company for biotech companies, and a range of components such as a marine biotechnology park, food research park, pharma estate as an integrated facility.

This will mean entrepreneurs will have infrastructure for carrying out research, developing and testing products, setting up pilot scale facilities and commercial scale production facilities.

The sources said that in the process Ticel, which is to create the business model, is also likely to induct a private sector partner who would take a stake in its equity.

The project would fill the existing gap - Ticel now offers only R&D facilities.IL&FS could take a 25 per cent stake in Ticel's equity and develop a world-class infrastructure, financially restructure Ticel and the Tamil Nadu Government would provide additional land required for the project.

Ticel, promoted by TIDCO (Tamil Nadu Industrial Development Corporation), at a capital cost of Rs 62.5 crore has a share capital of Rs 9 crore.

The other components of the infrastructure facility would be about 200 acres land earmarked for a food park at Oragadam to the west of Chennai; 300 acres for a marine biotechnology park near Mahabalipuram; and a biopharma city for developing customised infrastructure for biotech companies in Alathur, near the existing pharmaceutical industrial estate. There are firm proposals for the projects, including one by Bharat Biotech International Ltd, which is likely to sign an agreement with TIDCO for a 200-acre food bio park and a research institute at a cost of about Rs 70 crore.

The Tamil Nadu Biotech Board has approved a Rs 66- crore marine biotechnology park over 300 acres near Mahabalipuram.

An important feature of the project is venture capital funding with IL&FS tying up with Department of Science and Technology, State Government, and venture capital funds for companies that take up space at the biotech park.

The project would provide physical infrastructure such as land and building, facilities for fundamental research, an incubation facility for companies with interests in food technology, biofuels, agriculture and pharma, provide academic linkages and international access to technology and markets.

IL&FS, in this public-private partnership, is looking for support from the State Government including land, and the Centre, which is expected to provide soft financing, thus reducing risks for domestic and international companies.

The project in its entirety would fulfil the proposals set out by the Tamil Nadu Government in its biotechnology policy, the sources said.

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