India’s first life sciences infrastructure fund worth Rs1000 crore set up by Telangana govt.

Highlights:

  • The Telangana government has proposed to set up a Life Sciences Infrastructure Fund with a corpus of Rs 1,000 crore.
  • The fund is to be a first-of-its-kind in the country.
  • The fund will be used to create a modular plug-and-play specialised infrastructure for pharmaceuticals, biotechnology and medical devices industry.
  •  An MoU with Cerestra Advisors, a private equity firm, has been signed towards this end.
  • The PE fund has already bought Alexandria Knowledge Park in Hyderabad for about Rs 400 crore to build an office portfolio on R&D clients.
  • The Knowledge Park houses large tenants such as Novartis, Vimta Labs, Bharat Biotech, Biological E, Lonza among others.
  • The state has also proposed a Pharma City and the phase-1 is being developed across 8,200 acres.
  • The state has generated Rs 73,000 crore in investments and created 2.56 lakh jobs in the process, after the state government started the Telangana State Industrial Project Approval and Self-Certification System (TS-IPASS) in 2015.
  • The state is also setting up ‘Telangana Industrial health Clinic’ (TIHCL), a new financial initiative specially focussed for the growth of MSMEs and revival of sick units.
  • It is being set up with support from TSIDC with a corpus fund of 100 crore of which the state government will be contributing 10 crore, the central government is expected to provide a grant-in-aid support of Rs 50 crore and the rest through banks and financial institutions.
  • The fund will operate as a fintech company and will handhold enterprises to ward off the compliance risks for the partnering commercial banks.