PROGRESS ON ESTABLISHMENT OF THE PROJECT
The Hon’ble Chief Minister of Andhra Pradesh Dr. Y. S. Rajasekhara Reddy got the idea of establishing the institute in a meeting with Dr. L. Mohan, Director of Animal Husbandry. The project proposal was prepared and presented by Prof. G. N. Rao, Associate Dean (Retd) at a meeting at Sri Venkateswara Veterinary University, Tirupati chaired by the then Vice-Chancellor Dr. Manmohan Singh on 24-5-2007. Sri N. P. Rama Krishna Reddy, Special Secretary to Government, Animal Husbandry, Dairy Development and Fisheries Department was appointed as Officer on Special Duty (OSD) to IGCARL on 31-8-2007.
The Hon’ble Chief Minister laid the foundation stone for the Centre of Advanced Research on Livestock (CARL) at Pulivendula on 6-9-2007 and named it after the late Prime Minister Indira Gandhi as Indira Gandhi Centre for Advanced Research on Livestock (IGCARL).
Sri N. P. Ramakrishna Reddy, Special Secretary & OSD assisted by Prof. G. N. Rao, Advisor to APLDA (Ex-Associate Dean who originally proposed the project) and Dr Nissar Hussain, Advisor to APLDA (Retd CEO of APLDA) has taken rigorous exercise on day to day basis, interacted with more than 20 senior scientists and visited various Institutes such as CCMB, LaCONES, ICRISAT, BAIF institute with reputed Animal Houses in Pune, FMD Vaccine Centre in Pune and National Institute of Virology in Pune from 1-9-2007 till 16-10-2007.
The APIIC with Sri B. P. Acharya, IAS as Managing Director was engaged as executing agency and Dr. D. Vijay Kishore, Director and Dr.(Mrs.) P. Padmavathi, Professor of School of Planning & Architecture (presently Vice-Chancellor, JNA & FAU), Masab Tank, Hyderabad have been appointed as Architects for the project of IGCARL for the purpose of designing, master planning, preparation of estimates, preparation of required documents for calling of tenders, preparation of architectural features for the buildings of IGCARL etc.
The OSD held several meetings in CCMB, NIN and Teachers Home, Bhoiguda and CVSc, Rajendranagar, SVVU with several scientists, engineers and architects to finalize vision, mission and goal of the IGCARL including objectives, grouping of research labs, space requirements for various labs, administrative building, auditorium, animal houses etc to meet the requirements of International standards and staff requirements. After several rounds of discussions, the space requirements and staff requirements for IGCARL have been worked out. The total built up area is about 7.37 lakh sq. ft. The total staff required is 386 and the requirement of funds is Rs. 386 crore. It was proposed to complete the construction of IGCARL in 3 years period and the Research Block in the first phase was completed and inaugurated by the Hon’ble Chief Minister on 25-1-2009.
PPP and SEZ: Public private partnership for IGCARL was proposed by Dr. P. Suresh, Deputy Director, National Institute of Nutrition, Hyderabad while special economic zone was suggested by Prof. G. N. Rao, former Associate Dean, College of Veterinary Science, Rajendranagar. Sri N. P. Rama Krishna Reddy, OSD to IGCARL, being a technocrat, with his background experience on PPP projects on large ports like those at Kakinada, Gangavaram and Krishnapatnam and GMR-Hyderabad International Airport at Shamshabad readily agreed and vigorously pursued the proposals of PPP and SEZ and brought them to a successful stage making IGCARL a unique institute on livestock research not present anywhere in India and also rarely present at world level. The private developer would be mostly be interested in production of vaccines relating to FMD, Blue Tongue, PPR, New Castle Disease, Gum Boro, Marek’s Disease etc which will be the outcome of research at the Institute. So the research and vaccine production are interlinked components. Public Private Partnership (PPP) and Special Economic Zone (SEZ) are proposed so as to generate receipts for meeting the recurring expenditure for conducting research.
An extent of 656.45 acres of land has been acquired for development of the project on PPP and SEZ mode. The main purpose of the research centre is to improve the animal health & productivity. There are six groups of research covering 20 subjects. Private Partner (P.P) may plan for production of vaccine and diagnostics for various diseases like Foot & Mouth Disease in all cloven footed animals, Peste des Petits Ruminants (PPR) in sheep and goats, Blue Tongue in cattle and sheep, New Castle Disease, Infectious Bursal Disease, and Marek's Disease in poultry etc. which is a revenue earning source for the project besides helping the farmers. The P.P may also undertake freezing and export of Ongole cattle embryos which have great demand in Brazil and other countries. Further, testing and certification of milk, meat and eggs and their products for pesticide and antibiotic residues and composition etc for export purpose may be undertaken. Contract testing of drugs etc on laboratory animals may be undertaken. Advanced training courses may also be offered at international level by making use of the state of the art laboratories and other facilities at the Centre. Innovative research processes and their products at the Centre may be patented for earning revenue. Superior germplasm of livestock produced at the centre can be sold to various agencies in India and abroad.
It has been proposed to set up SEZ in IGCARL land at Pulivendula for the advantages it offers for the institute (Unit) and Developer as per the following relevant provisions of SEZ Act 2005 and SEZ Rules 2006:
As per SEZ Act, “manufacture” includes animal husbandry, poultry etc. A SEZ may be established either jointly or severally by the Central Government, State Government or any other person for manufacture of goods or rendering services or both. Any person, who intends to set up a SEZ, may, after identifying the area, make a proposal to the State Government for the purpose of setting up the SEZ. In case a State Government intends to set up a SEZ, it may, after identifying the area, forward the proposal directly to the “Board of Approval”.
The Central Government, while notifying any area as SEZ shall be guided by the following:
(a) generation of additional economic activity
(b) promotion of export of goods and services
(c) promotion of investment from domestic and foreign sources
(d) creation of employment opportunities
(e) development of infrastructure facilities
The areas falling within SEZs may be demarcated by the Central Government as
(a) processing area for setting up Units for activities, being the
manufacture of goods, or rendering services; or
(b) the area exclusively for trading or warehousing purposes; or
(c) the non-processing areas for activities other than those specified in (a)
Any goods or services exported out of, or imported into, or procured from the Domestic Tariff Area by (i) a Unit in SEZ or (ii) a Developer shall be exempt from the payment of taxes, duties or cess. The Central Government may appoint the Development Commissioner of one or more SEZs.
Any person, who intends to set up a Unit for carrying on the authorized operations in SEZ, may submit a proposal to the Development Commissioner concerned in such form and manner containing such particulars as may be prescribed. The State Government may notify policies for Developers and Units and take suitable steps for enactment of any law granting exemption from state taxes, levies and duties to the Developer or the entrepreneur.
As per SEZ Rules 2006, “capital goods” includes equipment and instruments for testing, research and development, quality and pollution control system, for use in animal husbandry, poultry and in the services sector. The processing area shall be fully secured by boundary wall or wire mesh fencing with specified entry and exit points. The authorized persons shall only be allowed to enter the processing area. A Unit may export goods or services as per the terms and conditions of Letter of Approval including agro-products.
Further, in order to achieve the goals and objectives of IGCARL, it was felt that there is huge requirement of funds. Therefore, the Government decided to explore the development of the Institute on Public-Private-Participation (PPP) mode and to declare it as Special Economic Zone, while simultaneously going ahead with the construction activities of IGCARL with Government funds. Accordingly, the Andhra Pradesh Industrial Infrastructure Corporation were asked to take further action for declaring required area as Special Economic Zone (SEZ) and to appoint suitable consultants for processing of selection of suitable developer for the IGCARL Project on PPP mode.
The Government constituted a committee with Sri B. P. Acharya, IAS, MD, APIIC as Chairman to oversee the process of appointment of consultants, selection of developer and contractor/firms/agencies etc for the IGCARL project and make suitable recommendations to APIIC. The Committee was later revised with Dr. Priyadarshi Dash, IAS, Special Chief Secretary to Government, AH, DD & F Department as Chairman.
The Government of Andhra Pradesh accorded approval for the following proposals at its Cabinet meeting held on 17-12-2007:
(1) To establish a Center for Advanced Research on Livestock to be
named as Indira Gandhi Centre for Advanced Research on Livestock (IGCARL) located at Pulivendula, in Kadapa District attached to Sri Venkateswara Veterinary University, Tirupathi as an autonomous institution.
(2) To develop IGCARL as World Class Institute under Public-Private-Participation i.e., PPP mode in the Special Economic Zone in the proposed area of about 644 acres.
(3) To construct the institutional buildings etc., with Government funds while simultaneously processing for selection of suitable developer to run the institute under PPP.
(4) To accord approval for tentative budget of Rs. 386, 24, 00, 000/-(rupees three hundred eighty six crores and twenty four lakhs only) under PLAN and to accord administrative sanction to incur an expenditure of Rs. 31.67 crores (Rupees thirty one crores sixty seven lakhs only) from the CM’s Package for the year 2007-2008.
Orders incorporating the above proposals for establishment of IGCARL
were issued in GO. Ms. No. 4, AH, DD & F Department dated 24-1-2008.
A website was opened for IGCARL as http://igcarl.ap.nic.in/igcarl through
NIC of Government of India. Walk-throughs have been prepared for IGCARL
as a research institute and for landscaping of IGCARL.
M/s IVRCL was engaged as the contractor and allotted both 1st and 2nd
phases of civil works amounting to about Rs 234 crore. The works of construction of buildings, compound wall etc, laying of roads, landscaping, power and water supply etc have been grounded. The main research building with about 135000 sft area which was the first to be grounded on 23-3-2008 has been completed and inaugurated by the Hon’ble Chief Minister on 25-1-2009. The remaining works will be completed by the end of December, 2009.
The details of works are as follows:
1. Phase I: 589206 sft of buildings etc Rs 100.02 crore (civil works Rs 87.58
crore, water supply Rs 7.82 crore and power supply Rs 14.62 crore). First
agreement for Phase I works was signed with IVRCL for Rs 78.85 crore on
15-3-2008 (to be completed by 14-9-2009).
2. Phase II: 147486 sft of buildings etc Rs 27.75 crore (civil works Rs 24.61
crore, water supply Rs 1.77 crore and power supply Rs 1.37 crore). Second
agreement for Phase II works was signed with IVRCL for Rs 98.37 crore on
2-8-2008 (to be completed by 1-11-2009).
3. Services for 736692 sft of buildings etc Rs 96.25 crore (ACP cladding Rs
27.71 crore, Internal roads Rs 27.48 crore, HVAC Rs 14.74 crore, compound
wall Rs 7.14 crore, fire hydrants and lift Rs 7.34 crore, external electricity
and DG set Rs 3.88 crore, external drainage Rs 3.25 crore, BMS & access
control Rs 2.47 crore and OHT, sump and bore wells Rs 2.24 crore).
Landscaping and avenue plantation works in IGCARL premises have also
been taken up to make the institute environment-friendly.
The Head of the Department and staff of Civil Engineering Department of
Osmania University Engineering College at Hyderabad has been engaged for third party quality inspection from 16-5-2008. They have since been making periodical visits to the site and giving their reports as well as guiding the engineers on the spot. This is in addition to the team from Delhi engaged by APIIC for quality inspection of all their works.
The APIIC signed agreement with M/s Ernst & Young consultants in the 1st week of January, 2008 for processing IGCARL on public private partnership. A number of Indian and foreign companies showed interest to join with GOAP to develop the IGCARL on Joint Venture basis. A global invitation for EOI was released in Hindu and Economic times on 23-7-2008 for identifying private partners. The last date of 18-8-2008 was extended to 30-8-2008. There has been good response as 9 parties applied for EOI. One to one Presentations were made by 6 parties namely Biological e of Hyderabad, Vicky’s of Pune, Vented (Runbacks) of Mumbai, Agrisearch & Alps mainly based in New Zealand, IMAC consortium mainly based in US and Pranjal Preventives and Diagnostics based in US on 30-9-2008 and 1-10-2008.
The proposal has been sent to the Government of India by APIIC on
22-7-2008 for declaring 77 acres of IGCARL land in Ratchumarripalli village near Pulivendula as Livestock Biotech SEZ. It has since been approved by Government of India on 22-9-2008 as Biotech SEZ and communicated in the letter dated 31-10-2008 of the Department of Commerce of the Ministry of Commerce & Industry. The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) which is the executing agency for the project is the developer of Biotech SEZ at IGCARL.
The APIIC submitted proposal to the Andhra Pradesh Pollution Control Board for environmental clearance for IGCARL. The SEAC of SEIAA considered the IGCARL project as Area Development Project i.e., B1 without public hearing at its meeting held on 23-10-2008 and called for EIA report. Accordingly, the environmental consultants namely M/s Bhagavathi Ana Labs, Hyderabad engaged by APIIC prepared the EIA report and submitted to SEAC. The SEIAA, AP, GOI, MoE&F issued environmental clearance for IGCARL in its order No. SEIAA/AP/KDP-10/2008 dated 8-5-2009.
The IGCARL has been incorporated as a private limited company under
the Companies Act, 1956 as Indira Gandhi Centre for Advanced Research on Livestock Private Limited on 11-11-2008 with Corporate Identity Number U93000AP2008PTC061801 of 2008-09. The company has 5 Directors namely the Special Chief Secretary and Special Secretary of AH, DD & F Department,
Managing Director and Executive Director of APIIC and Vice-Chancellor of SVVU. The present address of the company is the chambers of Sri N. P. Ramakrishna Reddy, Special Secretary & OSD of IGCARL i.e., Room No. 238, 1st Floor, D Block, A.P. Secretariat, Hyderabad 500022.
The budget sanctioned as per GO. Ms. No. 4, AH, DD & F Department dated 24-1-2008 for a period of three years is as follows (Rs in crores):
Due to PPP, equipment will be brought by private partners and it is proposed to save the provision of Rs 150 crore under equipment. The funds required and released by the Government are as follows (Rs in crores):
The expenditure incurred till 20-6-2009 is as follows (Rs):
Agreements have been entered into with M/s IMAC (USA)-Dodla Dairy Consortium as Joint Venture partner and M/s Indus Gene Expressions (USA) as a private partner. Discussions are going on with other partners like DOW Agro-sciences (USA) for joining IGCARL a JV or private partners.
Collaboration agreement was signed with M/s IMAC (USA) - Dodla Dairy
Consortium 10-1-2009 for development of certain facilities on Joint Venture basis. Share holders’ agreement, Project development agreement, State support agreement and Land lease agreements are under finalization. An extent of 27000 sq.ft area in Main Research Building and 87 acres of Non-SEZ land was handed over to M/s IMAC.
The proposed plan of work of M/s IMAC (USA) - Dodla Dairy Consortium during I phase (209-10) is as follows:
1. Microbiology Lab: For research on Silo Guard – to enhance
the life of raw milk & Lactase enzymes to reduce lactose in milk
2. Animal Nutrition Lab: For research on Feed, Feed additives &
Fodder. Commencement of operations: Aug- 2009. Invest: Rs 4 cars
3. Feed plant: 10 tons per hour mash plant for adult cattle.
Commencement of installation and machinery: Sept., 2009.
Commencement of operations: Dec., 2009. Investment: Rs 2 cars
4. Fodder plant: Dow Agro-sciences expressed interest in developing corn as
fodder. A decision is expected to be taken during their visit. Based on the
discussions, IMAC will finalize the type of fodder crop to be grown.
Commencement of installation and machinery: Sept- 2009.
Commencement of operations: Nov- 2009. Investment: Rs 2 crore
5. Dairy plant: Will procure milk from adjoining areas.
Target: 10000 litres/day in first year.
Products: The milk will be used to manufacture high quality paneer, lassi
and other milk products.
Marketing: The products will be initially introduced in Chennai and
Bangalore. Commencement of installation and machinery: Aug., 2009.
Commencement of operations: Sept., 2009. Investment: Rs 2 crore
Total investment: Rs 10 crore
6. Dow Agro-sciences – Executives of Dow visited IGCARL,
Pulivendula on 25th June. Dow Agro-sciences is a US$ 2 bn subsidiary of
US$ 40 bn Dow Chemicals. They expressed interest in undertaking basic
research at IGCARL as a part of IMAC Consortium.
In addition, IMAC is discussing for strategic tie ups and partnerships with the following:
1. American Breeders’ Inc. (Bovine reproduction)
2. Protein Genetics Inc. (Bovine genetics)
3. Associated Feed Co. (Cattle feed)
4. Nutrias LLC (Animal minerals)
The Special Secretary to Government & OSD to IGCARL proposes to visit US for discussions with Dow Agro-sciences on 3-7-2009.
Land Lease and Research Lab spaces Lease Agreements were signed on
18-4-2009 with M/s INDUS GENE Expressions Inc. (USA) for development of certain facilities. The State support agreement is under finalization. An extent of 47000 sq.ft area in Main Research Building and 87 acres of Non-SEZ land was handed over to M/s INDUS GENE Expressions Inc. (USA).
The proposed plan of work of M/s INDUS GENE Expressions Inc. (USA) is as follows:
The scientists and staff will be provided as follows:
1. Labs: Scientists: 160
2. Institute: Faculty: 20
3. Administration: Directors etc. 14
Support staff: 4
4. Production plant: Scientists: 65
5. Students: Ph. D: 20
M.V. Sc. 40
Following are the major equipment proposed to be procured by M/s INDUS GENE Expressions Inc. (USA):
1. Spectrophotometers, Thermo cyclers, Centrifuges, etc
2. GC/MS and LC/ MS Mass Spectrometers, NMR, etc
3. Electron Microscope, Phase Contrast and 2- Photon microscopes
4. Microscopes, PCR Machines, and Immunology Equip.
5. DNA sequencers, DNA synthesizers, Micro array equipment, etc.
6. Teaching lab equipment and audiovisual equip and computers.
7. Office furniture, Computers, Xerox copy machines, Fax machines, etc.
includes videoconferencing equipment.
8. Fermenters and Bioreactors
At the review meeting held by the Hon’ble Chief Minister on
11-6-2009, it was decided to reconstitute the IGCARL Board with the following 9 Directors: Special Chief Secretary and Special Secretary of AH, DD & F Department, Vice-Chancellor of SVVU, Sri Y. S. Vivekananda Reddy representing farmers, DDG( Animal Sciences) from ICAR, one reputed Scientist from International organization, Director of CCMB and Director of CDFD.
It was also decided at the above meeting to give one time exemption of Stamp duty & Registration charges for transfer of lands to IMAC-JV and Indus Gene Expressions Inc. Sri N. P. Ramakrishna Reddy, Special Secretary to Government & OSD to IGCARL was permitted to visit Denver, USA for discussions with Dow Agro-sciences on their participation with IGCARL at their invitation and expenses.
Establishment of IGCARL: The date-wise important developments on establishment of IGCARL were as follows:
Land: An extent of 656.8 acres of Government/private land (acquired by APIIC for Industrial Development Park) is provided for IGCARL at Pulivendula. The details of the land are as follows as per Lr. No. APIIC/LAC/2007 dated 26-4-2008 of APIIC:
The cost of land acquisition was paid to APIIC which is the land acquiring agency. In addition, adjacent farmers have offered about 50 acres of land for the institute and proposals are underway for acquiring this land.
The water requirements of IGCARL for the laboratories and residential quarters etc. have been worked out as 4 lakh litres per day. A overhead tank of 4 lakh litres capacity with an underground sump for two days storage of 8 lakh litres are being provided to meet the water requirements. Water will be obtained from municipal supply as well as bore wells on approximately 50:50 basis. The quality of bore well water at IGCARL is as follows:
Chemical analysis of water at IGCARL: The Department of Civil
Engineering, K.S.R.M. College of Engineering, Kadapa carried out chemical
analysis of water used for drinking purpose at IGCARL. The results are as follows:
Abstract of buildings of Phase I (2007-08 and 2008-09) and Phase II (2008-09 and 2009-10)
* Total may not tally because of change of some figures.
Details of accommodation of some buildings:
Schedule of construction work
Requirement of livestock
Note: The livestock strength was originally proposed and is subject to
change in view of PPP and SEZ.
Out of the annual recurring expenditure of about Rs 30 crore, the anticipated receipts are about Rs 10 crore which are as follows:
Note: The receipts were originally proposed and they will be very much
reduced in view of PPP and SEZ. However, IGCARL will receive
its share of revenues as JV partner.