Infrastructure-Bulk Drugs and Pharmaceuticals



Genome Valley

Government of Andhra Pradesh declares the area of approximately 600 sq. kilometres covering the mandals of Shamirpet, Medchal, Keesra and Uppal in Ranga Reddy District as the "Genome Valley" in which biotech activities will be encouraged and promoted. The area has developed as a natural cluster for biotech research, training and manufacturing activities with the following institutions and companies located here. Biotech Park, Knowledge Park and Bharat Biotech in Turkapalli village, Shamirpet mandal, Medi Citi, Shanta Biotechnics, Godrej Plant Biotech and Metchinikoff Biosystems near Medchal town, Satyam, Forest Research Centre near Doolapalli, Nuzeevedu Seed Co. at Kompally in Medchal Mandal, Indian Institute of Chemical Technology (IICT), National Institute for Nutrition (NIN), Centre for Cellular and Molecular Biology (CCMB), the Centre for DNA Fingerprinting and Diagnostics, Osmania University in uppal.

The Government of Andhra Pradesh intends to provide high quality infrastructure at a reasonable cost with integrated services to biotech manufacturing units by setting up a series of Biotech Parks throughout the State. The first such Park will be set up at Turkapalli village, Shamirpet Mandal, Ranga Reddy District, over approximately 150 acres of Government land, adjacent to the ICICI Knowledge Park. The Park will be set up as a joint venture project with a private promoter who will contribute to the equity of the project and will be responsible for designing, constructing, financing, marketing and maintaining the Park. The Park will aim to attract domestic and overseas firms. In pursuance of the new Industrial Policy 2001-2005, the Government of Andhra Pradesh will provide the basic infrastructure to the border of the Biotech Park viz., piped water supply, electricity substation, telecommunications with fibre optic connectivity, and approach road. There will be no power cuts in this Park and individual units will be permitted captive power generation. The Government of Andhra Pradesh will seek the support of Government of India in setting up a National Resource Centre, which will provide common facilities to the biotech companies and also incubators. The Government of Andhra Pradesh will also facilitate and support the setting up of specialized animal house facilities for laboratory experimentation, breeding of experimental animal models and development of genetically manipulated/modified animal models in the Biotech Park. The Biotech Park will enter into an arrangement with the ICICI Knowledge Park I for the sharing of infrastructure and the Parks together will provide "Idea to Commercialisation" services to the clients. In the first phase, the focus in this Park will be on therapeutics, diagnostics and industrial biotech.
RES.24128270.CELL;98481-28455.K.JAGADISHWAR YADAV

The Biotech Park aims to provide world class services to the clients in terms of :

State-of-the-art infrastructure
One-Stop Services
Quality products and services at competitive cost
Database on availability of skilled professionals
Networking between research and academic institutions and industry

The advantages of the Park are visualized as:

Provide a thrust to areas of prioritized industry segments
Help achieve regional and global leadership in the chosen areas through sharp focus
Allow for midstream corrections in the subsequent phases of development
Reduce the capital outlay for entrepreneurs
Improve the rate of return on investment

Genome Valley near Hyderabad will foster Biotech activities that promote economic development through the development and exchange of knowledge and technologies. It will provide an investor-friendly environment that will attract large corporations to set their Biotech R&D and manufacturing units here and will also, nurture start-up companies. It will provide not only high quality infrastructure for biotechnology such as superior telecommunications, uninterrupted power, well developed road network, assured water supply and attractive housing and recreation areas, 11 but also specialized facilities and services such as training and research institutes, bioinformatic centres, input suppliers.

The dairy sector has also been identified as one of the "Engines of Growth" in the Vision 2020. It is envisaged that Andhra Pradesh will be among the top three producers of milk and milk products in India by 2020. It is felt that biotechnology can provide several opportunities to increase yields and improve the health of the cattle and thereby to achieve the goal laid in the Vision document. The development and propagation of new and improved varieties of tree species will be taken up in the Telangana region with the support of the Forest Department's research stations at Dhoolapally in Ranga Reddy district, at Mulug in Medak district, Achuthapuram in Khammam district and Warangal and research stations under the AP-Netherland Biotech Project, in order to increase the tree cover in the region. Plant cell and tissue technology will be used to develop horticulture in the State with a thrust on clonal propagation, disease elimination, germ plasm exchange, gene transfer by wide hybridization, molecular genetical engineering, variant selection including somo-clonal variation. Initially, the new techniques will be applied to crops such as mango, banana, citrus, turmeric and to some ornamental crops.


Sales Tax
Keeping in view the special difficulties and risks involved in commercialising cutting-edge technologies in the field of biotechnology, Government of A.P. has fixed a nominal sales tax of 1% for "high-end" biotech products manufactured by units located in the Biotech Park in Turkapalli village, Shamirpet mandal, Ranga Reddy district. This sales tax rate will be applicable only for a period of 7 years from the date of commencement of commercial production of a biotech unit, and will be extended only to those units which go into commercial production on or before March 31st, 2006. The cut-off date for this concessional rate is 31st March, 2010, beyond which date, no new unit in this Park will be extended this incentive. The Department of Science and Technology, Government of India will notify products which do not fall into the category of 'high end' from time to time.
Similar incentives will be offered to units in other Biotech Parks that may be set up in the State.
Government of Andhra Pradesh will introduce a separate entry for biotech products in the schedule of sales tax
Govt. of Andhra Pradesh will propose to Govt. of India that high-end biotech products should be exempt from all taxes for a period of 10 years. The definition of high-end biotech products will be provided by the Department of Science and Technology, Govt. of India.

Land for Biotech Parks/Activities:
Government of Andhra Pradesh will provide, wherever possible, government land on lease or as equity to other Biotech Parks, if the site is otherwise found suitable for such projects.
In order to encourage the setting up of bioinformatic centres, Government of Andhra Pradesh will offer a rebate in the cost of government land allotted to a bioinformatics company at Rs. 20,000 (Twenty thousand only) per job created, subject to the following conditions:
i) The rebate shall be applicable only in respect of lands allotted by Government / AP IIC with prospective effect
ii) The rebate shall be restricted to Rs. 20,000 per job created for persons specializing in Bio-informatics or the cost of the bare land (excluding development charges/cost), whichever is less. A maximum of 1 acre of government land will be allotted to any company for setting up a bioinformatics centre.
Bioinformatic centres will be permitted to be established without any locational restrictions. They can be established in residential, commercial or industrial zones
Companies setting up Bioinformatics Centres in the Genome Valley will get a rebate of Rs. 30,000 per job created, subject to the value of a maximum of 2 acres of government land and a 100% exemption from registration and stamp duties. Similar incentive will be provided to the Bioinformatic units to be set up in Biotech Parks.

Exemption from Power Cuts:
The biotech industry is exempt from the purview of statutory power cuts
Industrial power tariff (and all other admissible incentives and concessions for industry) will be applicable to the biotech industry.

Labour Concessions:
General permission will be accorded to run a three-shift operation to the biotech industry (subject to Government of India concurrence)
Allow women to work in the 3rd shift, subject to certain safety norms (subject to Government of India concurrence).
A system of self-certification will be introduced for the biotech industry under various Factories' and Labour Acts.
Permit flexibility in the opening and closing times and in the weekly holiday of a b.iotech unit by amending relevant provisions of the A.P. Shops and Establishment Act.
Exempt biotech units from the provisions of Contract Labour Act 1970, in so far as non-core activities are concerned (with concurrence of Government of India)
Delegate all or some of the powers of the Labour Commissioner to designated officers to tackle the labour problems efficiently and promptly in Biotech Parks.
Set up exclusive Special Industrial Tribunals for Biotech Parks to give top priority to the settlement of disputes that may arise in units located in the Biotech parks.

Land and Grants for Training Institutes:
Government will allot government land either free of cost, or at a concessional rate and give grants for capital expenditure to Institutes of Training in the field of biotechnology and related areas on a case by case basis in the Genome Valley. Training and extension for farmers and technicians in the area of biotechnology will also be taken up through such institutions and users of
ICICI-Knowledge Park.

Land for Housing:
Government will provide Government land at concessional rate, wherever suitable land is available for developing housing and recreation facilities for personnel working in Biotech field in designated areas in and around Genome Valley.

Mega Projects:
Special incentives will be offered, on a case by case basis, to mega projects with an investment of more than Rs. 50 crores in a new company, or in the expansion of an existing company, which provide employment to more than 250 persons technically qualified in the area of biotechnology or allied fields.