The Hindu Business Line : Biotech incubation centre progressing slowly

Reasons for delay
Working out right business model, getting private partners.
Upward revision of the project cost to Rs 25 crore
The Department of Biotechnology is yet to provide funds.

Hyderabad , Aug. 16

Three years since its announcement and foundation laying, the country's first full-fledged Biotechnology Incubation Centre (BTIC), expected to come up in Hyderabad, is still looking for funds to be completed.

The estimated Rs 25-crore venture is progressing slowly as the Andhra Pradesh Government has said it has limited funds. The Union Department of Biotechnology (DBT) has agreed to provide funds but has not so far.

Interestingly, the former Science and Technology Minister, in the previous NDA Government Mr Murli Manohar Joshi laid the foundation stone in 2003. The then Secretary, DBT, Dr Manju Sharma, had backed the project.

New initiative

The BTIC initiative was agreed to be jointly undertaken by the DBT, the Andhra Pradesh Government and other science departments concerned.

The State Government had allocated three acres near the Shapoorji Pallonji Biotech Park and the ICICI Knowledge Park on the outskirts of the city to develop the centre.

On its part, the DBT had agreed to release Rs 8-9 crore for the fiscal 2003-04, to kickstart the project. The Indian Institute of Chemical Technology (IICT) here, which was the lead consultant, prepared the report for implementation in 2002.

Facilities

The IICT had proposed that in addition to providing infrastructure and research facilities to start-up biotechnology companies, the BTIC could establish a sharing relationship with the SP Biotech Park as well as the ICICI Knowledge Park, so that it emerged as a vibrant centre. The BTIC would be initially established and managed by a consortium led by IICT.

In fact, the Council of Scientific and Industrial Research lab has also offered part of its facilities and expertise to help industries willing to enter biotechnology or start-ups.

The Director of IICT, Dr J.S. Yadav, said the necessary equipment for the incubator was in place, the delay was in completing the building and facilities. "We have gone back to the DBT for funds and there has been a positive response. We are awaiting sanctions to get the work started."

The State Secretary for Biotechnology, Dr Ashok, said the delay was due to two reasons.

The first was working out the right `business model' and getting private partners, so that BTIC could be run on commercial lines. The second reason was the upward revision of the project cost from Rs 20 crore -25 crore. This was necessitated because the facilities were to meet the norms of Good Laboratory Practises and Good Medical Practises norms, he told Business Line.

On the financial commitments of the project, Dr Ashok said the State had committed Rs 7.66 crore and the balance Rs 12 crore was to be contributed by DBT. So far, the State has given Rs 5.2 crore. However, as for the additional Rs 5 crore, the State Government was of the view that the DBT should bear it. He expressed optimism that these issues would be sorted out and the BTIC would be grounded by the end of 2006.

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