Biotech industry has a new patron

WHY would a company with a turnover of Rs 9,712 crore and profits of Rs 933 crore want a research loan of less than Rs 10 crore from the government? Ask the Department of Biotechnology (DBT), which has become venture capitalist to well-heeled industry. In a novel scheme that turns several concepts on its head, DBT is providing half the project costs, loans at giveaway rates and hand-holding to boot—all to encourage cutting-edge research in agriculture, healthcare and energy. It is also throwing open the expertise of the public sector organisations to companies, some of whom are acknowledged leaders in their field.

All these goodies come from the Biotechnology Industry Research Assistance Programme or BIRAP, a special partnership created by DBT with ABLE, the representative organisation of the biotech industry, and the public sector Biotech Consortium India Ltd (BCIL). With a kitty of Rs 350 crore to disburse during the 11th Plan, DBT says it expects to promote “innovation, pre-proof-of-concept research and accelerated technology and product development” in the areas of agriculture, health and energy. Such projects are being kick-started on the Biotechnology Industry Partnership Programme (BIPP), and DBT has had an impressive haul so far: Maharashtra Hybrid Seeds Company or Mahyco, Tata Chemicals, Metahelix Life Sciences and Advanta India of the United Phosphorous Group (see table).

Maharaj Kishan Bhan, secretary, DBT, told Down To Earth that the dozen-odd agriculture projects selected for funding so far are intended to discover novel genes that would provide resistance to pests and diseases, and tolerance to abiotic stresses. “Our genomics is targeted at those problems that are beyond the capability of even the best managed agri-systems,” he says.

Most of the agriculture projects are, indeed, for genetically modified (GM) crops. So far 9-10 requests for projects have been made under the public-private partnership (PPP) scheme, according to DBT adviser Renu Swarup, who heads BIRAP, and the response has been tremendous. What sets apart BIPP from other PPPs? “What we do is take on the risk,” explains Swarup, who was earlier director with DBT. “Wherever there is a high-risk project we give a combination of grants and loans. Companies have the assurance that part of the risk is mitigated. In a sense we are like venture capitalists.”

Rajasthan opens farm gates
The scientist as a babu
How competent is Indian science?
Biodiversity—India’s other scandal
Interview: We give them complete mentorship