The fire brigade officials were informed after the fire broke out in the third-storey building where medicines were kept.
The fire tenders struggled for two hours to control the blaze which destroyed medicines and furniture worth lakhs of rupees, they said.
Senior officials, including the district magistrate P Guru Prasad and director of the Institute Dr J B Singh have rushed to the spot.
Further probes are on to ascertain the cause behind the incident, police added.
