Biotech gets Rs 150 cr for R&D

BANGALORE: The FY06 has recognized the role of the sunrise industries —biotech and pharmaceuticals. In what could be a major boost to the industry, Dr P Chidambaram announced the provision of a Rs 150 crore corpus fund for R&D in biotech and pharmaceuticals starting next year. "The government is committed to providing a stable environment and incentives for the biotechnology industry to grow," he said.

Further, he also announced the creation of a national horticultural mission with a budget of Rs 630 crore. In a move that would encourage this fledgling industry, he also announced a reduction in customs duty on nine machinery items used by pharma and biotech sectors, to 5 percent. Reacting to this move, KK Narayanan, MD, Metahelix and ABLE executive council member said, "This is a positive budget for the biotech industry and shows the significance of the biotech in India. We are pleased that some of our recommendations like the setting up of the corpus fund has been announced. The proposal to set up a strategic agriculture research initiative is also welcome."

Hyderabad based Shantha Biotech's MD, VaraPrasad Reddy wished the budget had more to offer. " There could have been more emphasis on education and health sectors which are largely ignored. We from ABLE had requested the government to set up a National Test House to certify the quality standards. So far, our country does not even have one testing house to test the quality of our product."

Further, he rues that the government has not looked into the setting up of training institutes for BT. However, Reddy is gratified with the move to reduce customs duty adding, "The biotech industry entirely depends on imports for all equipment needs."