National biotech strategy on the anvil

A comprehensive national biotechnology development strategy is on the anvil. Aimed at making India globally competitive in the emerging bio-economy, a package of incentives and policy measures is slated to be put up for Cabinet approval soon.

The proposed policy envisages a host of initiatives, including a law similar to the US Bayh Dole Act that facilitates filing of patents, a single-window clearance mechanism for establishing biotech industries, fiscal and tax incentives to foster development of the indigenous industry and a single regulatory body.

The draft policy, officials in the department of biotechnology told Business Standard, had proposed a customs and central excise holiday for five years from April 1 this year to March 31, 2011 for start-up companies with a turnover of up to Rs 5 crore.

Also proposed is duty-free imports of key biotech research and development items for a similar period. In addition, patents filing will be encouraged by providing a 100 per cent deduction under Section 35 of Income Tax Act for all expenditure incurred on patents-related activities.

The policy also proposes the creation of four new autonomous institutes, a National Biotechnology Council, inter-disciplinary centres of excellence in R&D with world-class infrastructure, upgrading of 20 select colleges in as many cities, 1,000 scholarships to under-graduate students and an increase in the number of PhD fellowships to 500 per annum.

In addition, the number of post-doctoral fellowships offered by the DBT will be increased to 300 annually.

Officials said 50 centres of excellence would be set up over a five-year period in priority thematic areas. "Each centre will be built around a gifted leader who will have teams of young scientists working with him," they said.

Among other measures, the policy proposes that biotech companies be allowed priority sector lending from public sector banks and financial institutions. It also suggests the creation of a "large facility inter-agency capital fund" to provide access to cutting-edge research infrastructure for product development programmes.

DBT officials added that though all concerned ministries were represented in the committee that prepared the strategy, they were awaiting formal comments on the draft Cabinet note. "If any changes are proposed, they will be incorporated and a final note will be sent for Cabinet approval soon," an official added.