The new biotech policy lays emphasis on creating strategic competencies by the government of Gujarat and providing incentives in various forms to build new facilities, upgrade existing facilities, upgrade technologies etc.  This will help in creating a biotech ecosystem and improve our ranking in the biotech sector in India by attracting investment from entrepreneurs of Gujarat and India

The current policy aims to make Gujarat a globally-recognized Biotechnology hub. It will promote partnerships between various stakeholders such as scientific establishments and industries and will help to encourage innovation by acquiring technologies, advance the industry-academia collaborations and overall growth of biotechnology  

The policy will support the development of technologies, manufacturing of products, diversification and expansions under the two packages for incentive strategies.

It will support transformative changes in the Biotechnology sector by extending the option of availing incentives for small and mega BT units.

The current biotechnology policy is more forward-looking and is a quantum jump compared to biotechnology policy 2016-21

The most important point of the policy is that it includes strategic projects and mega/large projects, which have been given special packages, which will attract new investment through innovative and existing industries and create new employment opportunities in the state. There will be support for the innovative CAPEX and OPEX models. It will encourage special projects such as pre-clinical testing, genome sequencing in the private sector, plug and play facilities, private sector BSL-3 lab-vaccine development, and manufacturing, testing and certification laboratories.

If one compares it to the old policy, the additions are an increase in the capital assistance from 10% to 25%. Increase in cap up to Rs 200 crore. Increase in interest subsidy from 3% to 7% and finally delinking of disbursement from the commencement of production to 20 quarterly disbursements over five years.

However, the policy does not distinguish between innovative product development and biosimilar product development.

Innovative products are higher in the value chain but are riskier as the outcome is not certain and has a longer gestation period. Incentives for capital, operational assistance in various forms including technology upgradation and employment generation and finally the new policy will strengthen the overall ecosystem.

(The writer is AVP, Biotechnology, Cadila Pharmaceuticals)