Pharma, biotech park misses deadline

Govt says it's work is done, shifts responsibility to developer

The government of Gujarat's International Pharma and Biotech Park (IPBP) project is nowhere near completion. Scheduled to become operational in 2004 and house around 50 biotech and pharmaceutical units, civic work at the park has yet not been completed.

As far as units are concerned, seven companies have so far confirmed that they will set up units in the park and just one has begun construction in the park.

In September 2003, the government of Gujarat signed a memorandum of understanding with Ahmedabad-based Ganesh Housing Corporation Ltd for the construction of the park on the outskirts of Ahmedabad.

Sources said that one reason for the delay was the difficulty in acquiring land for the project, located 15 kms from Sarkhej Circle on the Sarkhej-Bavla Road. Another reason, they said, for the not-so-warm response by the companies is the apprehension whether all that has been promised will be made available.

Minister of state for industries, Anil Patel said that the state government has completed whatever formalities were required and is willing to provide all necessary help, but the developer has to expedite the matter.

"It is for the developer to do the remaining work in the case of IPBP. The state government has completed all the necessary formalities.

Ganesh Housing Corporation is yet to complete construction of the research and development centre, the facilitation centre, and other infrastructure facilities. Besides, the developer has yet not finalised from whom to source gas which will be used as the source of energy for the units.

However, the developer of the park says that the civil work is almost complete and several small and medium pharma and biotech companies are making inquiries for setting up units in the park.

"In the next 12 to 15 months, all the proposed 44 units in the park will become operational. These will generate a combined turnover of about Rs 1,200 crore in the first year of operations," said Bhavin Mehta, head, business development, Ganesh Housing Corporation Ltd (GHC).

Commenting on the progress of the project, in which GHC will invest a sum of around Rs 20 crore, Mehta said that apart from 60-feet wide roads that have already been constructed but await carpeting, work on water, electricity and gas connections is on.

He added that the IPBP will also house a fire station, dispensary, facilitation centre, common effluent treatment plant and other amenties. "There will also be a R&D centre within the park, which the companies can use," said Mehta.

He also said that small and medium companies can pick up plots of the size of about 1,000 to 5,000 square feet.

On the present status of companies taking up plots, Mehta said, "Seven companies have confirmed that they will set up units here. Rajkot-based Skymax Pharma has already begun construction work on a 52,000 square yard plot of land."

Talking about the scope of the project, Mehta said if each of the biotech or pharma companies invests a sum of around Rs 5 crore, IPBP will see an investment of at least Rs 250 crore.

"In addition, there will be job opportunities for about 4,500 skilled and semi-skilled personnel and for another 1,500 non skilled persons," IPBP will be among the best pharma parks in Asia.

---

The promiselist

• Single window clearance
• Natural gas pipeline networkto save 30 per cent of energy costs
• 50 per cent stamp duty waiver
• Cluster development programme
• Electricity duty exemption for five years
• 5% interest subsidy on projects worth less than Rs 10 crore