Biotechnology Infrastructure and Capability Development in the State
Uttar
Pradesh Biotech Policy 2004
Vision
Uttar
Pradesh to become more prosperous State through utilizing
modern tools of biotechnology-brining prosperity to farmers,
generating employment in rural areas, food for all, top
class health and clean environment.
Mission
Develop
knowledge based economy, assure benefit of biotechnology
to all section of the State and promote entrepreneurship
in biotechnology based industries.
Objectives
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To
establish pre-eminent position of the State in the filed
of biotechnology.
-
To
create awareness about the new entrepreneurial and job
opportunities in the field of biotechnology.
-
To
attract biotechnology based industrial investment.
-
To
develop and conserve bioresource for sustainable commercial
use.
-
To
harness existing R&D capabilities for industrial/
commercial developments in the State and to promote
corporate funding and developing such knowledge.
-
To
develop adequate institutional and related infrastructure
for development, acquisition and dissemination of biotechnology
through out the State.
-
To
promote research and development and to establish centres
of excellence in frontier area of biotechnology.
Biotechnology
Biotechnology
a frontier area of science offers numerous opportunities
in the field of health care, agriculture and environment.
Along with information technology, biotechnology is considered
as knowledge based technology which has great potential
to improve the quality of life for poor and rich alike.
The importance of Biotechnology has been recognized world
over. Developed countries took initiative and invested
in generating knowledge, have taken lead in the development
of Biotechnology. The adoption rate of biotechnology in
agriculture. Impacts such as reduced cost, increased chemical
use have perused persuaded farmers in USA and canada to
adopt new techniques. These factors are critical in Indian
context as well.
Department of Biotechnology, Government pf India has provided
great impetus in the form of infrastructure and human
resource. The states in South and Maharashtra have utilized
biotechnology in health care and agriculture and have
attracted investment from a number of biotech industries
from country and abroad. Bengaluru is considered as the
most developed biotech city in the country and is followed
by Mumbai/Pune belt and Hyderabad
U.P. however, has not been able to apply biotechnology
for its development, though significant expertise in terms
of R&D institutions, human resource and agricultural
diversity exists. Agriculture sector in U.P. has made
significant expertise in terms of R&D institutions,
human resource and agricultural diversity exists. Agriculture
sector in U.P. has made significant progress. It is first
amongst states in the production of wheat (25.9 million
ton, 35% of total production in the Country). The State
ranks second in the production of sugarcane (122 million
tons, 40%), fruits (8.5 million ton, 18%), potatoes(38%)
and milk(12.9 million ton). Food production yield of the
State is higher than the international levels of yield.
The State used about 2.5 million ton(22%) of nitrogenous
fertilizers, 0.55 million ton (16%) of phosphatic fertilizers
and 0.086 million on (7.9%) of potassium based fertilizers
in 1998-99. The bias for nitrogen in an unbalanced use
of fertilizer is obvious . In spite of such consumption
the productivity of crops is low. There is large gap between
potential and actual yields of most crops.
There is large gap between potential and actual yields
of most crops . The State has not be able to do much
in the health, dairy and food sectors In spite of resources.
Through application of tissue culture productivity of
horticulture, floriculture and agriculture can be enhanced
and made economically beneficial. With the application
of Biotechnology in these areas it would be possible to
enhance the productivity of food, milk and induct health
care through nutraceuticals and pharmaceuticals.
Lucknow offers a multidisciplinary blend of excellent
facilities and expertise in the area of biotechnology.
Around 3000 highly qualified scientists are working in
four CSIR laboratories and three ICAR laboratories in the
city and many of them have earned national and international
recognition. These institutes have excellent expertise
and infrastructure in the area of biomedical sciences
and drug development,toxicology and environmental protection,
production of pest resistant plants, high yielding crop
and fruit varieties.
Realizing the great potential of U.P., Lucknow has been
declared as Biotechnology City of India during the 89th
session of the Indian Science Congress at January 3, 2002.
A biotechnology Park with the sponsorship of Department
of Biotechnology, Govt. of India and the collaboration
with Department of Science and Technology, U. P. Govt.,
CSIR and other agencies is being setup at Kursi Road,Jankipuram,Lucknow
on 8 acres of land proposed by the Department of Science
and Technology, U.P. Govt. In order to provide forward
linkages of the Park Biotech Networking Facilities will
be developed by Council of Science & Technology, U.P.
at agriculture farm of about 28 acres of U.P. State Institute
of Rural Development, Bakshi Ka Talab, Lucknow. Also,
an area of about 200 acres have been identified for setting
up of Biotech Industries on Lucknow-Kanpur Road near Amausi
Airport. This will be developed by UPSIDC as Biotech Industrial
Park.
To harness benefits of biotechnology for the prosperity
of the State, the Govt. of U.P. has chartered a Biotech
Policy. The State would encourage growth of R&D, development
of manpower and resources in key areas like bioinformatics,
plant and animal genetics by networking with the existing
institutions, universities and medical institutes. It would
also set up Centres for Excellence in human genetics,
applied biotechnology, transgenic plants and animals, safety
evaluation of Biotech products. The State would develop
institutional mechanism to carry the fruits of Biotech
R&D being pursued at research institutions and technology
incubators of the Biotech Park to farmers for employment
generation through tissue culture and macro propagation.
It would provide better quality and high yielding variety
of crops and plants to farmers.
The macro propagation technology will be extended to regional
level in the State by transferring he technology to the
farmers through their training.
Liberal incentives would be provided to biotech industries
in the forms of exemptions from payment of entry tax on
material for construction and equipment, on stamp duty
and registration charges for specified period of time,
exemption of electricity tax on captive power generation
sets. A single window mechanism of clearance for biotech
proposals would be set up to help biotech industries in
setting up their R&D and production units in the State.
The State would make provision of cluster development
Fund/Venture Capital to help R&D in research institutions
and industries and setting up of joint ventures.
The
Department of Science & Technology, U.P. Govt. would
be the Nodal Agency to implement the Biotech Policy. A
Biotechnology Board under the Chairmanship of Hon’ble
Chief Minister with Secretary, S&T as a Member Secretary
would be constituted. The board will consist of senior
officials from the Government as well as eminent representatives
from industry and experts from the field of biotechnology.
The
Board will have a Scientific Advisory Committee and Technology
Resource Group for providing inputs for developing and
fine tuning the Biotechnology Policy.
In
order to make R&D useful & promote corporate funding
for its development, Special Purpose Vehicle shall be
constituted under Company
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INCENTIVES
& CONCESSIONS WITH REGARD TO BIOTECHNOLOGY
BASED INDUSTRIAL / COMERCIAL DEVELOPMENT
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Single
Window Facility and Constitution of Biotechnology Development
Board.
·
In order to complete all formalities and to provide
permission letter, Single Window Facility shall be made
available to biotechnological units.
·
High powered Biotechnology Development Board under
the Chairmanship of Chief Minister of the State with Secretary/Principal
Secretary, Department of Science and Technology, Govt.
of U.P. as member Secretary shall be constituted for the
same.
Relaxation
of Taxes on Biotechnology based Products.
·
General facilities provided to the industries shall also
be extended to Biotechnological units as declared by the
State Government in the Industrial and service sector investment
policy.
·
The incentives provided to IT units according to 10th
five year plan by Government of India shall also be intended
to Biotechnology units by State Government.
·
The units engaged on dissemination of Biotechnology
based techniques and products like seeds, biofertilizers,
improved genetics material etc. to farmers shall be considered
eligible for providing subsidy on capital investment.
·
All decisions of High Powered committee, Finance Ministry
of Indian Government tax requirement shall be accepted/honoured
by the State Government.
Relaxation
on land for establishment of Biotechnological Unit.
·
Available government land of Gram Sabha & Nazool
shall be given on lease for 99 years for establishment
of Biotechnological units at market value.
Relaxation
on entry tax
· Biotechnological units shall be exempted
for entry tax for fifteen years, on capital goods including
captive generation sets.
Relaxation
captive generation.
·
Captive generation sets installed by biotechnological
units shall be exempted of electricity tax for 10 years.
Uninterrupted
Power Supply
·
Uninterrupted Power Supply shall be ensured by giving
dedicated feeder to those biotechnological units, in which
capital investment is more than Rs. 10 crores.
·
Biotechnology units shall be kept out of power cuts. Biotechnology
units may be considered in the category of R&D units
for first 5 years and accordingly electricity tariff may
be admissible.
Relaxation
in Zonal Regulations.
·
Biotechnology units established in Biotech Parks/Biotech
Industrial Areas shall be given exemption for Floor Area
Ratio (FAR) to the extent of 50% to the prevailing norms;
the aforesaid limit may be considered to be given to the
extent of 25% to the units in other the merit with regard
to population density, available resources, environmental
aspects , etc.
Relaxation
in Stamp Duty and Registration Fee.
100
percent relaxation will be given on Registration fee and
Stamp duty on establishment of Biotech units. Cent percent
stamp duty shall be exempted to the units in the State.
Nominal registration fees at the rate of Rs. 2/- per thousand
to the maximum limit of Rs. 5000/- shall be charged from
the units in the State.
Pioneer Units
·
Those Biotechnological units having investment of
more than 10 crores shall be declared as Pioneer units
and benefits equivalent to the other industry shall be
given to biotech units.
Constitution
of Biotechnology Development Cell
·
Biotechnology Development Cell shall be constituted in
the Council of Science & Technology, U.P. for providing
technological guidance and support in CST(U.P.) IPR facility
& website shall also be established.
·
Centres of excellence in frontier areas of biotechnology
shall also be established.
Relaxation
on Mega Projects.
Such
projects where an investment of Rs. 50 Crores.
Or more will be made either in expansion of existing unit
or in setting up new unit, also such units which employ
more than 250 people will be declared Mega
Projects. Such project will be given relaxation under
special package.
Simplified
Labour Law
·
Labour law shall be simplified in such a way so as
to provide employment to women during evening hours.
For
expansion, diversification and renewal of small scale
industries, relaxation shall be given in registration
fees. These companies shall be made available made stamp
duties at minimum rates when working with State Government
agencies on terms of lease-cum-sales basis. Further, at
the time of absolute sale deed, the rate of stamp duty
shall be based on the value of the land existing at the
time of lease. This concession shall be applicable to
the companies in the biotechnology sector.
Provision of Cluster Development Fund/Venture Capital
·
The Government of Uttar Pradesh will encourage setting
of cluster development fund and venture capital fund
for Biotech industries with private participation To ensure
with, the State Government will provide necessary fund
for investment as seed capital/venture capital. These
funds will take care of critical gaps in a biotechnology;
industry cluster by developing new capabilities, new technology
products, and innovative business start ups and provide
impetus to the development of enterprises.
Financing
and Access to Capital
·
Steady flow of funds on reasonable terms and at reasonable
costs for proper development of Biotech companies. Government
of Uttar Pradesh will facilitate providing appropriate
funds to this sector through its various financing agencies
(UPFC,PICUP) and other Government of India and International
financial institutions.
· The financing institutions in biotechnology
operation will look into the early stage funding.
· Realizing the need that investor’s
will have to commit resources to demonstrate the commercial
potential of a discovery and that they would require further
research and development, early stage financing of Rs.
50 lakhs to Rs. 3.5 crores, at the concept stage, may
be considered.
Encouragement
to the Commercialisation of R&D findings
·
Their exists ample risk in converting fruitful pilot level
R&D findings in their Commercialisation, which are
expensive as well. State Government shall pay adequate
attention to provide financial support to such units having
adequate production, marketing and distribution networks
as to develop series of beneficial new projects in innovation
cycle.
Establishment
of Biotech Parks
·
State of the art Biotechnology Parks shall be established
at Noida & Lucknow.
Privatisation
in infrastructure Development
·
In order to promote Privatisation in development of industrial
area in the field of Biotechnology, 50% of the capital
investment to the maximum limit of Rs. 2.50 crores shall
be given as subsidy, for which infrastructure development
fund shall be developed.
Biotech Park,Lucknow
·
Biotech Park,Lucknow has been established as an autonomous
organization, for which U.P. Government has provided 8
acre land at Kursi Road, Lucknow. State of art facility
of International standard and Techno economically viable
pilot facilities with the support of Department of Biotechnology,
Govt. of India, Council of Scientific and Industrial Research,
Govt. of India and Department of Science & Technology,Govt.
of U.P. are being developed in the aforesaid premises.
Forward linkages of the aforesaid park in the field of
industry (in about 150-200 acre industrial area) on Lucknow-Kanpur
Road, near Amausi Road) and in the field of agricultural
& Rural Development (in about 28 acre land at Bakshi
Ka Talab on Sitapur Road) are being created by the State
Government. Following Incentives and concessions will
be provided to the aforesaid park and to the other Biotech
Industrial area/park/facilities.
· Entry tax on machinery/equipments/capital
goods and on construction material shall be exempted for
15 years to the units in the park.
· Cent percent stamp duty shall be exempted
to the units in the park. Nominal registration fees at
the rate of Rs. 2/- per thousand to the maximum limit
of Rs. 5000/- shall be charged from the units in the park.
· In case of first lease as well as subsequent
lease to biotech companies, concessions shall be available
upon certification by the Department of Science &
Technology, U.P. Government.
· 15% subsidy on capital investments to
the maximum limit of Rs. 30 lakhs shall be admissible
to the new biotech units and to the expansion of existing
units.
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