Karnataka is the major biotechnology hotspot in India - and
Bangalore, the capital, is globally known as the country's premier IT
and BT nerve center. BioSpectrum honors Karnataka with the State of the
Year Award 2010, for its life sciences-friendly ecosystem
Nandan Biomatrix, a
sustainable energy company with headquarters in Hyderabad, is setting
up a biotechnology park in Bidar, a remote area in northern Karnataka,
at an investment of
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96 crore. Hindustan Petroleum Corporation
Limited (HPCL), Indian refining and marketing major, is setting up a
huge green R&D center in Bangalore at an investment of
![](http://www.biospectrumindia.com/images/content/2010/aug/INR-currency_symbol.jpg)
550 crore; and Kemwell, a leading provider of
contract manufacturing and development services, is expanding
operations in Bangalore, at an investment of
![](http://www.biospectrumindia.com/images/content/2010/aug/INR-currency_symbol.jpg)
257 crore.
These announcements show that Karnataka has an edge over other States,
in attracting investments. This is largely due to the State
government's initiatives with the announcement of Millennium Biotech
Policy II, support of the industry-academia group (Vision Group on
Biotechnology - led by Kiran Mazumdar Shaw of Biocon) to drive the
growth of the industry.
Karnataka has emerged an ideal location for both multinationals and new
entrepreneurs, to set up biotechnology (BT) business in India. Of 350
biotechnology companies in India, 170 companies are based in Karnataka;
and generate revenues of up to
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3,000 crore. The Government of Karnataka is
committed to establishing a biotechnology corridor for the development
of biotechnology industry in the State.
Government initiatives
Karnataka was the first Indian State to announce the Biotech Policy in
2001. With changing times and business environment, the State
government realized the need to come up with a new policy to support
the biotechnology industry. On December 9, 2009, Karnataka unveiled its
Millennium Biotech Policy II. The new policy outlines steps to further
enhance the development of the biotechnology industry, and harness its
benefits for the common citizen, in the years to come.
The policy offers a number of additional fiscal incentives and
concessions. Apart from rebate on stamp duty and exemption of entry
tax, electricity duty and industrial power tariff; there are additional
incentives like investment promotion subsidy, waiver of conversion
fine, subsidy for effluent treatment plants (ETPs), interest free
loan on VAT, anchor unit subsidy, interest subsidy, financial support
towards patent registration, standardization, water conservation and
energy conservation. As a focus area, the policy makes special
commitments in the area of biofuels. Karnataka has joined the
international movement to go green. The State has set a goal to meet 20
percent of its fuel needs from biofuels by 2020.
Karnataka is setting up a bio-venture fund, with a corpus of
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50 crore, in partnership with professional
venture capital firms. The State will give 26 percent of the fund; and
the remaining 74 percent will be raised from venture capitalists. It
has also set up a corpus fund of
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20 crore to facilitate grant of
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20 lakh each, for enabling commercialization of
research results. Besides the State government's support, the industry
has the advantage of the presence of a strong investor
community/venture capitalists like i2India Ventures, Canbank Venture
Capital, KITVEN Fund in the State.
The State government, together with Government of India, has proposed
to set up a Bio IT park in Bangalore's Institute of Bioinformatics and
Applied Biotechnology (IBAB) campus, on a public-private partnership
model. The Bio IT facility will be a hub for both IT and life sciences
organizations, research institutions and academia.
Apart from BioIT facility, the Karnataka government has taken
initiatives to set up biotechnology parks across the State, to
encourage the sector's growth. Major projects include, Bangalore Helix,
a 106-acre state-of-the-art biotechnology park in Bangalore; Vivarium,
an animal house in Bidar; Nutri/Nutraceutical and Phyto/Pharmaceutical
Park (N2P2), an institute under the Central Food Technological Research
Institute (CFTRI), in Mysore; a Marine Biotech Park in Mangalore; and
an Agri-Biotech Park in Dharwad. The parks are scheduled to become
operational by 2011. The government is also promoting the establishment
of biotechnology parks by the private sector.
Plugging the gaps
In a step towards improving the quality of human resources for the
biotechnology sector, and bridging the gap between industry and
academia, the State government has promoted a new concept called
Finishing Schools, with the support of Association of Biotechnology led
Enterprises (ABLE), the lobby group for the biotechnology industry; and
Vision Group on Biotechnology, with government's financial support of
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1 crore per Finishing School.
Karnataka has a Centre for Cellular and Molecular Platforms (C-CAMP),
under the Department of Biotechnology, Government of India; which will
act as an enabler of success in bioscience research and
entrepreneurship by providing research, development, training and
services in state-of-the-art technology platforms. C-CAMP, together
with National Centre for Biological Sciences (NCBS) and Institute for
Stem Cell Biology & Regenerative Medicine (inStem) form the
Bangalore Bio-Cluster. These three entities bring together unique
individual capabilities and a shared multi-disciplinary approach; to
create an interactive bioscience and technology research enterprise.
Finally, Karnataka's flagship biotechnology event, Bangalore India Bio,
has been a major tool in providing and enhancing partnering
opportunities for Indian biotechnology companies, with global companies
for the past 10 years.
With such significant success, Karnataka has been driving on its
strengths and advantages; and should continue to look at supporting the
growth of the industry, by implementing policy initiatives and proper
monitoring of the schemes. Otherwise, the companies with global
aspirations such as Biocon, will look at other destinations like
Malaysia for their growth.
“Karnataka is already a
leader in the life sciences sector. First time entrepreneurs are more
in Karnataka; innovation and value addition are happening at all levels�
-Ashok Kumar C Manoli, Principal Secretary to Govt, Department
of IT, BT and S&T, Government of Karnataka
What makes Bangalore attractive?
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“Bangalore is a part of the
largest biotechnology cluster in the
country that has industry-friendly State government policies; and a
good supply of talent pool�
-
KK Narayanan, MD, Metahelix Life Sciences
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“After being considered the
Silicon Valley of India, Bangalore, is also
emerging as a biotechnology hub; and it provides good opportunity for
life sciences companies�
-
GS Krishnan, regional president (India), Novozymes
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“Bangalore has always been
widely regarded as the knowledge hub of
India, hence businesses that need specialized knowledge-based skills
have always found Bangalore a very attractive destination�
-
Anurag Gupta, country manager, GE Healthcare Life Sciences,
India
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“Bangalore is fast emerging
as an undisputed investment destination for
the life sciences and biotechnology companies. With over 180
biotechnology companies located in Bangalore, it alone accounts for
one-fifth of the country's biotechnology revenue�
-
CS Jadhav, director (marketing), Nandan Biomatrix
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“Bangalore has excellent
scientific and medical infrastructure. It has
attracted research headquarters of global companies. Bangalore has
developed an excellent life sciences ecosystem
-
DA Prasanna, founder & chairman, Ecron Acunova
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“The Government of India is
setting up an Institute for Stem Cell Science and Regenerative in
Bangalore at an investment of
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203 crore. This infrastructure set up makes
Bangalore the best location for the niche regenerative medicine field�
-
BN Manohar, president, Stempeutics Research
“Karnataka has an edge over other
States�
Q What are the unique strategies adopted by Karnataka to
promote life sciences companies?
Through policy and fund initiatives, the Karnataka government
encourages growth of the life sciences sector in the State. We are
planning to set up a new Center for Human Genetics (CHG) with Prof
Sharat Chandra as director, at the BioIT facility. The Karnataka
government has decided to grant an additional
3 crore corpus fund for CHG, to encourage its
activities in the field of DNA analysis. We want CHG to work in unison
with Institute of Bioinformatics & Applied Biotechnology (IBAB).
IBAB's Center for Genome Sequencing will also be an added attraction of
the BioIT park.
Karnataka is promoting the establishment of biotechnology parks
throughout the State. We are in the process of finalizing
Nutri/Nutraceutical and Phyto/Pharmaceutical Park, and we expect to get
the approval from the central government within two months. If that
happens, N2P2 will be the first-of its kind project in the country. We
are in the final stages of discussion with Government of Spain and an
American University, to set up the Agri-Biotech Park.
Q How are the policy and infrastructure initiatives of
the Millenium Biotech Policy II progressing?
We have provided several incentives for the biotechnology industry as
part of the Millennium Biotech Policy II. According to the policy, we
will provide 20 percent of the capital infrastructure. Besides two
biotechnology schools were selected for the Biotech Finishing Schools
project; and 10 more schools are shortlisted. The committee for setting
up Finishing Schools is headed by Prof G Padmanabhan, emeritus
professor at IISC, Bangalore; and it is conceptualized by the Vision
Group headed by Kiran Mazumdar-Shaw of Biocon. The Finishing School
will become operational from the next academic year.
We will direct funds through the bio-venture fund initiative maintained
by KITVEN fund - which was meant only for IT - and has now been
extended to biotechnology as well. We are encouraging new ventures by
providing fund assistance. The funds are allotted as grant, and partly
as soft loan, at three-to-four percent interest.
Q What makes Karnataka a promising base for the life
sciences industry?
Karnataka is already a leader in the life sciences sector. First time
entrepreneurs are more in Karnataka; innovation and value addition are
happening at all levels. Interest shown by companies to set up
biotechnology parks in rural areas like Bidar, show the confidence of
biotechnology companies to set their base in the State. Major credit
for this progress goes to the Vision Group headed by Kiran
Mazumdar-Shaw, members and subject experts of the team. We send senior
officers to various countries to promote our State in this sector. The
State government is very keen on developing biotechnology.
Pradeep Kumar & Narayan Kulkarni in Bangalore