In a significant development for Odisha's biotechnology sector, Sapigen Biologix, a leading vaccine production company, has expressed its intent to significantly expand its manufacturing footprint in Bhubaneswar. The company has proposed an additional investment of Rs 1,000 crore to develop new vaccines and is seeking a 50% capital subsidy from the state government to facilitate this ambitious expansion.
Details of the Proposed Expansion and Subsidy Request
Sapigen Biologix, which has already established a large-scale, state-of-the-art human vaccine manufacturing plant in the Odisha capital—the only such facility in Eastern India—recently communicated its plans to the state's Chief Secretary. The company's current investment in the Bhubaneswar facility stands at Rs 1,500 crore, where it will shortly begin manufacturing vaccines for malaria and cholera.
The proposed Rs 1,000 crore infusion is earmarked for the research, development, and production of vaccines targeting several diseases, including chikungunya, zika, non-typhoidal salmonella (NTS), and shigella. The company highlighted that these are high-risk, long-gestation projects with development cycles spanning 4 to 5 years. They require the early establishment of GMP-certified biosafety level (BSL) 2/3 facilities even before clinical trials commence.
While the Odisha Biotech Policy-2024 offers a 30% capital incentive, Sapigen Biologix has requested an additional 20% support to achieve a total 50% capital subsidy. This financial support, the company argues, is crucial for the expansion of manufacturing capabilities in the city.
Potential Impact on Odisha's Biotech Landscape
The expansion is poised to have a multi-faceted positive impact on the region. Primarily, it will lead to substantial employment creation in Bhubaneswar. Furthermore, Sapigen Biologix stated that its presence and success have already acted as a catalyst, with two additional biopharma companies initiating projects in Odisha based on its recommendations. This trend underscores the state's growing credibility as a competitive biotech destination.
The company's letter emphasized that the enhanced facility would not only serve public health goals by producing critical vaccines but also attract more biotechnology firms to invest in Odisha, creating a robust industrial cluster.
Government's Response and Next Steps
The Odisha government has taken note of the request. The state's Science and Technology Department has formally written to the Managing Director of the Industrial Promotion and Investment Corporation of Odisha (IPICOL), urging the agency to examine the feasibility of Sapigen Biologix's proposal for the enhanced capital subsidy.
This move indicates the state administration's proactive approach to evaluating large-scale industrial investments that promise job growth and sectoral development. The decision on the subsidy will be a key indicator of Odisha's commitment to positioning itself as a national leader in biotechnology and pharmaceutical manufacturing.
