"We are setting up standards with world class infrastructure and a long term policy for making AP the #1 destination for investments from all over the world."

Interested in knowing what is happening in Andhra Pradesh! BioSpectrum could have written on the biotech activity in the state. But we decided that this information, if it comes from the horse's mouth, will be even more interesting to read. We sent a detailed questionnaire to Chief Minister N Chandrababu Naidu and he responded to the same. Here is what Naidu has to say on the state's biotech activities, initiatives, plans and vision.

What is your vision for Andhra Pradesh with reference to the biotech/life sciences sector?

My vision for Andhra Pradesh with reference to biotech and life sciences sector is that a common man should get the benefits of new technologies emerging in these fields. My vision is to provide a disease-free and healthy society by using modern technologies and we are working towards that. For instance, we are establishing International Institute of Life Sciences in Hyderabad, involving the leading biotech and life sciences industries in the State.

We are developing centers-of-excellence in different branches of biotechnology viz. for agri and veterinary biotechnology in Acharya NG Ranga University, an agribiotech incubator in ICRISAT, a marine resource development center in association with Andhra Pradesh University and a pharma biotech hub in SP Biotech Park and ICICI Knowledge Park in Genome Valley near Hyderabad. Through such initiatives, we envision developing the state of AP into a biotechnology state of the country.

When and how did Andhra Pradesh embark on attracting investments in biotechnology?

Andhra Pradesh has a very strong pharmaceutical industry. It is the bulk drug capital of the country. So when the Government of Andhra Pradesh started to emphasize on biotechnology, several industry leaders started looking towards Andhra Pradesh and Hyderabad in particular. The state has been attracting investments in biotechnology for the last seven to eight years and the investments have picked up in the last couple of years.

What are the short term and long term strategies to make AP a leader in biotechnology?

Andhra Pradesh is the first state in the country to have an exclusive policy for biotechnology in the year 2001. We have announced the policy framework and clear strategies have been worked out. The short term strategies are projecting the strengths of the state, especially the locational advantage of Hyderabad, the strong presence of world class research institutes like CCMB, CDFD and IICT, the availability of a strong pool of trained and scientific manpower, the recently developed ICICI Knowledge Park and SP Biotech Park and a proactive and environment friendly Government Policy.

Among the other strategies to make AP a leader in biotechnology, we have created a brand name called "Genome Valley" and it is widely popular all over the world. We are setting up standards with world class infrastructure and a long term policy for making AP the #1 destination for investments from all over the world. We have created an enabling environment for establishing the biotech industry. We have a single window clearance system for hassle free licensing and approvals. We participate in the international and national exhibitions, conferences and demonstrate our strengths and invite foreign participation and collaboration into Andhra Pradesh. We are liberalizing the labor laws to match the requirements of the industry.

Has the State Government identified specific sectors to leverage the existing strengths in AP and leapfrog in biotech?

The AP government has been encouraging pharma and biotech sectors to leverage the existing strengths in AP. Vaccines and recombinant DNA products in health care, nutraceuticals and medicinal plant formulations are some of the areas that have been identified as key sectors for growth and long-term development. This apart, contract research and clinical trials also have good promise.

The APIDC-VCL is a path-breaking initiative by AP to provide the much needed "seed funds" for biotech entrepreneurs. Will the corpus be increased if the demand from entrepreneurs increases tremendously?

APIDC-VCL is the first of its kind in the country. Government of Andhra Pradesh has analyzed that the most crucial input in starting a new venture is the VC funding. In order to kick start the biotech industry, especially startups, the APIDC-VCL endeavor is vital. The corpus is swelling every day and as of now it is targeted to mop up about Rs 150 crore. Apart from the AP government, Andhra Bank, LIC, GIC, PNB and others are participating in this VC Fund.

What are the Government's plans to provide the latest infrastructure and incubator facilities to biotech entrepreneurs?

The Government of Andhra Pradesh has special plans to provide the latest infrastructure in the form of uninterrupted water and electricity supplies to the Biotech and Knowledge Parks. A dedicated sub-station has been erected in the Genome Valley for uninterrupted electricity. Fast track roads have been laid connecting the Genome Valley to other parts of the city. India's first biotech incubator is being established in SP Biotech Park in Genome Valley with an outlay of Rs 22.50 crore in association with DBT and IICT. The incubator offers the latest state-of-the-art facilities for start-up and existing biotech companies and entrepreneurs to try out their new technologies and processes which otherwise would become very difficult to do. The Government is investing huge amounts on all the infrastructure. A National Animal Resource Testing facility is also planned in association with ICMR and National Institutes of Health and an area of 100 acres has been earmarked for this purpose in Genome Valley. An agribiotech incubator is coming up in ICRISAT exclusively for developing new technologies for sustainable agriculture. It will facilitate in producing new crops and varieties for food security and for increasing the nutritional value.

What are the fiscal and other incentives available to potential biotech entrepreneurs in AP?

There are a number of incentives available to potential entrepreneurs in Andhra Pradesh. There is 25 percent capital subsidy in the cost of the land for the biotech parks, and a rebate in the land cost at the rate of Rs 30,000 for every job created in bioinformatics and other related fields in the parks and a concessional sales tax of only 1 percent as against 12-14 percent outside the park areas. The other incentives available to potential biotech entrepreneurs in AP include provision of water supply and power supply up to the doorstep and excellent roads. A residential accommodation proposal for the personnel working in Genome Valley at concessional rate has also been initiated recently. The government has created an IPR facilitation cell for helping companies in their patenting and other aspects as well as a virtual library and documentation center in ICICI Knowledge Park.

Many states seem to be competing with each other to attract biotech entrepreneurs? Is such competition desirable and healthy?

In a growing economy, competition is unavoidable. Irrespective of where the investment comes from, India is developing and marching ahead in the field of biotechnology. But the investors will always look for the best state on "good governance" and if healthy competition exists, it will boost the industrial growth and help the country ultimately.

Which are the most promising startups and technologies emerging in the state?

There are many startups and technologies in biotechnology. Matrix Laboratories, GVK Bio-Sciences, Bio-Serve Biotechnologies, Krebs Biochemicals, Indigene Pharma, etc. are a few start-ups with their new technologies and international partners located in the Knowledge Park. The Biotech Park has companies like Genotex, KCP Biotech, Ocimum, Jasmine, Aktiva Biotech and Sandor. These are all startups with good promise. Many companies have anti-cancer and anti-AIDS technologies and products like diagnostic kits are being proposed to be manufactured in Hyderabad.

Will you push for a National Biotechnology Policy and a National Biotech Venture Fund to give fillip to this sector?

A biotechnology VC Fund at national level is a necessity for India. We will also strive to get a National Biotechnology Policy.

High quality education is a key factor in biotech. AP has a number of top quality education centers. Any plans to supplement these efforts to cater to the future needs?

We are at present strengthening the existing training and educational institutions in the state. We are planning to set up one Marine Bioresources Development Center in Visakhapatnam. While an agribiotech incubator is coming up in ICRISAT campus, National Animal Resource Testing facility is being set up in collaboration with ICMR/NIH at Genome Valley.

Are there any plans to ensure that the private sector educational institutions adhere to certain minimum standards?

We have an active private sector in the state. We encourage public-private and private sector participation models in biotech education and industry. Quality standards are maintained in education and training. Genome Valley is emerging as a quality standard certification agency for biotech in the state.

Do you have any specific projects to ensure that some of the benefits of modern biotechnology address the larger social and health issues confronting people in tackling diseases like typhoid, cholera and malaria?

Our Government is committed to health for all. Health is identified as one of the important thrust areas. Immunization programme is very successful in the state.

We are marching towards vaccines for cholera, typhoid and other communicable diseases. Hyderabad is emerging as the vaccines' capital of the country. We have leading developers and manufacturers like Biological E, Bharat Biotech and Shantha Biotech here.

What would you like Andhra Pradesh to be related with—meaning what should the recall value of the State be?

I want AP to be #1 in biotech. That is our goal. I think we are marching ahead.

Who are the members of your biotech team? And to whom should the credit go in making biotech successful in AP?

Government is proactive and responsive. It is a team effort.