Kerala: Vaccine unit to come up in three stages

THIRUVANANTHAPURAM: An expert committee appointed to study and recommend the setting up of a Covid-19 vaccine manufacturing unit in the state has recommended a three stage process to set up the facility. The committee has given its recommendations to the government after holding discussions with as many as eight vaccine manufacturing companies.
The committee has recommended (accessed by TOI) to build a fill-finish unit in the first phase, a full-fledged manufacturing unit for newer vaccines in the second phase and a research and development unit in association with Institute of Advanced Virology in the third phase. The expert committee also recommended the government to invite an expression of interest (EoI) at the earliest.
As part of the first stage to establish a fill-finish facility, the nearly completed 85,000 sqft facilities needed for the vaccine industry, in the Life Sciences Park campus can be offered on rent to contract manufacturing organizations (CMOs), to set up the facility and start marketing vaccines from here. Since many of them already have facilities elsewhere in the country and would be ready to come to the state only if attractive terms are offered, the rent for the building may be fixed at a subsidised rate, the committee recommended.
The committee further said that the CMOs like Stelis Biopharma and Virchow Biotech who participated in the interaction are looking for a built-up infrastructure to set up a fill-finish unit. These companies already have an agreement with Russia-based vaccine manufacturing companies to do the fill-finish for Sputnik vaccine and are planning to expand their fill-finish facilities, for which the state can give attractive offers, the committee said.
It then recommended the government to invite an EoI, conduct a technical evaluation and shortlist those companies that meet the government’s eligibility criteria. The committee further said that the government should float another EoI to select companies interested in setting up a manufacturing facility and a research and development facility. The Kerala State Industrial Development Corporation should be asked to earmark15-20 acres as a separate zone in the Life Sciences Park, for the vaccine production units, it said.
The committee said that the major incentives asked by the companies include subsidised land on long-term lease, subsidised power and water, government equity or partnership, ease of regulations, counter guarantee from the government on the vaccine produced, privilege position for procurement through a purchase agreement, stamp duty waiver, GST subsidy on domestic sales turnover-based incentive, employment generation subsidy, interest subsidy, loans at subsidised interest rate, 30% capital expenditure subsidy, import duty and tax exemptions for specialized equipment and enough incentives to scale the produce manufacture, industry-grade purified water, etc.
It said that the government may also consider setting up a special purpose vehicle to fasttrack the processes and to engage with companies. The cabinet had decided to set up Covid-19 vaccine manufacturing unit in the Life Sciences Park at Thonnakkal.