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HOME » INTERVIEWS
MONDAY, January 5th 2004.
DECCAN CHRONICLE, HYDERABAD

MONDAY ONE-ON-ONE - Bibhu prasad acharya,
" AP has set the stage for biotech sector to grow"

Bibhu Prasad Acharya completed 20 years in the Indian Admin­istrative Service last year. In the past two decades, Ach­arya, who belongs to the Andhra Pradesh cadre of the service, worked as Sub-Collector in Bhadrachalam, District Collector of Warangal, Managing Director of AP Tourism Development Corp., Director of Marketing, Commissioner of Information and later, relief. Along with way, he won the Governor's Citation for relief work during the floods which ravaged Bhadrachalam, and a masters degree in development from Manchester University. He has been Secretary, Industries and Commerce, to the government, in charge of the Biotechnology, Apparel, Leather, Sugar and Handlooms industry since 2001. But it is his work in the biotechnology sector that has given Acharya a high-profile. Excerpts from an interview with Shaukat H. Mohammed
Okay, the state government announced a Biotech Policy back in May, 2001. What has the state achieved since then?
Andhra Pradesh was the second State in the country to announce a Biotech Policy. The policy gives some sales tax concessions to companies investing in the biotechnology sector in the State. But the challenge was get all the elements required for making the sector successful. Towards this end, the government has helped in creating the Genome Valley, which extends over 600 km. It includes research organizations like Indian Institute of Chemical Technology. Centre for D.NA Finger-printing and Diagno­stics and National Institute of Nutrition, the ICICI Knowledge Park and SP Biotech Park. The APIDC has launched a venture capital fund for biotechnology while the State government has launched a research development fund of its own, with a corpus of Rs 10 crore.

That's fine, but what are the tangible benefits of these exercises?

They have given Andbra Pradesh the critical mass to emerge as the State where biotechnology companies can set up shop and flourish. There is a lot of interaction between industry and research organizations. IC1CIKP is the place where entrepreneurs can set up their R&D facilities, while their production facilities can be set up in Biotech Park. Several companies have set up their facility in both parks, including Biological E and Sigma-Aldrich of the US. Fourteen companies have booked space in Biotech Park. In the past six months, several MNCs like Johnson & Johnson have shown interest in building R&D facilities in Genome Valley.

Power and water supply are the two major problems facing industry in the State. Is it any different in Genome Valley?
Both parks are plug-and-play places, where companies can get to work quickly. The parks have uninterrupted power supply. We are investing Rs 30 crore in a water supply project to the parks. Apart from this, the Indian Council of Medical Research is setting up an animal farm where biotech companies can conduct their tests. The Department of Biotechn­ology is setting up a biotech incubator at the IICT which can be used by biotech companies. The Genome Valley will be the hub of biotechnology in the country over the next two years. What is the State of play with the MoUs signed between the State government and various research organizations in the US and elsewhere?
Our initial effort was to tie-up with the Research Triangle in North Carolina in the US. The University of Hyderabad has tied with the Pacific Region Grid Middleware programme based in San Diego, California. This will give us access to a supercomputer. Sun Microsystems will be setting up a CoE at CDFD at an estimated cost of $6 million. Any Intellectual Pro­perty Rights developed by the centre will remain with the CDFD.

But no major pharmaceutical or biotechnology company has shown interest in either the ICICI Knowledge Park or the Biotech Park, isn 't it?
Yes, most of the enterprises in both parks are to be set up by Non-Resident Indians. So­me of these projects are in the process of financial closure. Unlike an IT company, biotechnology ventures take a longer gestation period. Banks take longer in extending credit to biotechnology companies. And like I said several major pharmaceutical companies, both from India and abroad, have shown interest in the parks, and we believe it is just a matter of time before big companies are convinced about the facilities available in Genome Valley.

Will BioAsia 2004, which the government is organizing in February, be ano­ther of those talk shops which such events normally are?
Not at all. Firstly, it is not an event organised by the government for the government. BioAsia is the first major biotechnology event in Asia. Europe has got Biotechnica, the US has Bio, while biotechnology com­panies in Asia don't have a forum where they share ideas and network. BioAsia will be providing the forum. We expect biotechnology firms from China, Korea, Japan, Malaysia and Singapore to participate in the event, and network with their opposite numbers in India.
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