Biz
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Infrastructure |
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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.
Infrastructure
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.
SRI RAJ DIARY MALLIKARJUNA NAGAR CHINTAL KUNTA.L.B.NAGAR. 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
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One-Stop Services
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Quality products and services at competitive cost
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Database on availability of skilled professionals
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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
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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.
INCENTIVES
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.
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Government of Andhra Pradesh will introduce a separate
entry for biotech products in the schedule of sales tax
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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:
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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
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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:
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The biotech industry is exempt from the purview of
statutory power cuts
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Industrial power tariff (and all other admissible
incentives and concessions for industry) will be
applicable to the biotech industry.
Labour Concessions:
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General permission will be accorded to run a three-shift
operation to the biotech industry (subject to Government
of India concurrence)
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Allow women to work in the 3rd shift, subject to certain
safety norms (subject to Government of India concurrence).
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A system of self-certification will be introduced for the
biotech industry under various Factories' and Labour Acts.
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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.
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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)
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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.
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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. |