Gujarat announces new biotech policy, targets Rs 15K crore sector by 2021

The new policy targets to create employment opportunities for more than one lakh people and create professionally competent manpower pool of 25,000 people by 2021

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Mumbai: The Government of Gujarat has come up with a more aggressive new policy on biotechnology. Setting a huge target for itself in next five years, it plans to be the number one state in the country. The state government claims that it stands at the third place in biotech industry at national level. The Finance Minister of Gujarat, Mr Nitin Patel while announcing the new policy in Gandhinagar on December 26th, mentioned that biotechnology industry in Gujarat has a size of about Rs 4,500 crore and we plan to triple the turnover to Rs 15,000 crore by 2021.

“The earlier policy was a bit conservative and so, we did not get investments as per our expectations. So, the government felt that it needed to a bit more liberal with incentives to attract more investments,” said Mr J N Singh, Chief Secretary, Gujarat. The old policy increased the number of biotechnology units in Gujarat from 79 to 154 and attracted over Rs 2,500 crore investments.

As compared to the old policy that increased the number of biotechnology units in Gujarat from 79 to 154 and attracted over Rs 2,500 crore investments, the new policy targets to create employment opportunities for more than one lakh people and create professionally competent manpower pool of 25,000 people by 2021.

The incentives declared under this policy include capital subsidy, incentive on power tariff and electricity duty, registration and stamp duty concession, employment generation incentive, patent assistance, market development support and assistance in quality certification.

Apart from capital subsidies given for players who want to set up horizontal and vertical biotechnology parks, the state government would give a power tariff subsidy at the rate of Rs 1 per unit in the billed amount of the utility as promotional incentive on reimbursement basis for a period of five years. These parks would also be given 100 percent reimbursement for electricity duty paid for a period of five years on coterminous basis with power tariff subsidy.

Individual biotechnology units would also get various subsidies, including interest subsidy, lease rental subsidy and support for research and development. The government would provide patent assistance at the rate of 50 per cent, subject to a ceiling of Rs 2 lakh per domestic patent and Rs 5 lakh per international patent. This assistance would be limited to Rs 25 lakh for international and Rs 10 lakh for domestic patents per unit or institution. Similarly, there are financial assistance for biotechnology incubators like mentoring assistance of Rs 5 lakh per annum, operating assistance and capital assistance.