THIRUVANANTHAPURAM: Hyderabad-based Bharat Biotech Company, which manufactures Covaxin, will set up a vaccine manufacturing unit at the Life Sciences Park in Thonnakkal, Thiruvananthapuram. With the arrival of Bharat Biotech, Life Sciences Park will be the first vaccine manufacturing facility in the state. The production will begin next year. The government on Saturday gave technical approval to two companies for the production of vaccines. The second is Virchow Biotech, a Hyderabad - based company. With this, Kerala will be in the list of states producing vaccines for various diseases in the country.

Apart from Covaxin, Bharat Biotech is a company that has developed vaccines for chikungunya and Zika virus. Their products include vaccines, biotherapeutics and health care products. The company also produces vaccines for Japanese encephalitis. Hyderabad-based Virchow Biotech is the first company in the world to manufacture and distribute platelets commercially.

Concessions

The promised concessions will be approved within a month as the company arrived on the government's invitation. 85,000 sq ft of land will be leased for 60 years at 50 percent discount. The concessions include stamp duty, registration exemption, 30 percent subsidy on capital expenditure, loan facility at 4 percent for 20 years, and subsidized rates on electricity and water.

Next step
Investment criteria must be approved. The tender system was rejected as the company was ready to invest as requested by the government. BOT and leasing system are all under consideration. Decisions also need to be made about the building and storage facilities at the airport. With the approval of the government, an agreement will be signed with KSIDC to ensure an acceptable package for both companies.