The Karnataka government has decided to build a biotech park adjacent to the electronics city on the outskirts of Bangalore, a top official said here Monday.

"The state cabinet has cleared our proposal to build the state-of-the-art park in about 106 acres at a cost of Rs.1.03 billion. The project will have an institute of bio-informatics and applied biotechnology and a centre for human genetics," IT and BT secretary Anup K. Pujari told reporters.

The central government, which is investing Rs.140 million in the project, has so far released Rs.110 million for taking up the first phase of work that includes a hostel-cum-administrative building to house the Karnataka Biotechnology And Information Technology Services. The entire land for the project was acquired for Rs.170 million.

To be built in the next 18 months, the park will also have a Rs. 670-million biotech incubation centre and common instrumentation facility in the second phase to facilitate entrepreneurs set up biotech units and research and development centres for driving innovation, discovery-led projects and clinical development to create IPs (intellectual properties).

"The Delhi-based National Building Corporation has been selected to execute the project for having qualified as the lowest bidder in the tender, in which nine firms participated and three were shortlisted," Pujari said.

The project, touted to be first of its kind in the country, is expected to give a fillip to the efforts of the state in cutting-edge biotechnology. Entrepreneurs and enterprises will be able to use the park's hi-tech facilities to innovate new products and services for domestic and export markets.

Biocon chairperson Kiran Mazumdar-Shaw, who heads the Biotech Vision group for promotion of bitech industry in the state, said the Karnataka Biotechnology And Information Technology Services would provide secretarial services to single-window agencies and extend support services to IT and BT industries.

"The park will enable Bangalore to emerge as a major cluster and facilitate rapid growth of the biotech sector in the state, with opportunities to leverage the wealth of talent and resources in the country," Shaw said.

According to the 2005 bio-cluster data, the state is home to 131 of the total 265 biotech firms across the country, with 127 based in and around Bangalore, employing about 12,000 people, including 7500 scientists and techies.