A single window clearance mechanism will be set up for establishing biotechnology parks in India, Minister for Science and Technology Kapil Sibal has said.

Sibal, who is leading a Federation of Indian Chambers of Commerce and Industry (FICCI) biotech delegation to the US, said biotechnology parks would be set up for the growth of the industry through public-private partnerships.

Addressing a gathering of industrialists, academicians and venture capitalists at the Indian consulate in Manhattan Monday, Sibal spoke about the initiatives being taken by the government in the biotechnology sector that has the potential of generating $5 billion revenues and creating one million jobs by 2010.

He said biotechnology parks could provide a mechanism for licensing new technologies to upcoming biotech companies to start new ventures and to achieve early stage value enhancement of the technology with minimum financial inputs.

The minister said India had a huge human resource pool to be exploited by investors. He pointed out that some areas in biotechnology such as clinical biotech, bio-resources, and industrial biotechnology were open for 100 percent foreign direct investment.

FICCI secretary general Amit Mitra told IANS: "What we need to achieve is to inform American businesses not about generalities but about opportunities in a sector. That is the whole picture."

The FICCI delegation is on a visit June 12-17 to encourage investment in biotechnology. Biopharmaceuticals has the potential to become a $2 billion market opportunity largely driven by vaccines and biogenerics.

Sibal pointed out that the largest numbers of pharma plants approved by the US Food and Drug Administration (FDA) were in India and 45 percent of applications with the FDA were from Indian companies.

The biotechnology sector has in recent years witnessed accelerated growth. Current estimates indicate that the industry grew by 39 percent annually to reach a value of $705 million in 2003-2004. Total investment also increased in 2003-04 by 26 percent to reach $137 million.

Clinical development services are expected to generate in excess of $1.5 billion while bio-services or outsourced research services could garner a market of $1 billion by 2010.

Pharma exports presently account for 56 percent of revenue. Currently the bio-pharma sector occupies the largest market share of 76 percent followed by bio-agri 8.42 percent and bio-services by 7.70 percent.

Sibal emphasised on the need to set up institutes of excellence in the country and to invest heavily in their research. "The biggest challenge before us is that we don't have the faculty for that. It will take some years to develop that," he said.

India was well placed to support biotech parks, given its large human resource base in molecular biology, microbiology, biochemical engineering, synthetic organic chemistry and allied branches, and strong institutional support, he added.