The Gujarat government has proposed to set up a venture capital fund to attract clinical research and contract research projects in the state.

This was stated by Narendra Modi, chief minister of Gujarat, while addressing a meet on bioinformatics and contract research at the Biotech India 2003, organised by the Confederation of Indian Industry, and being held concurrently with the International Engineering and Technology Fair 2003.

Modi said Gujarat was best-placed to capture a large part of the growing bioinformatics and contract research markets. He also invited biotech entrepreneurs to Gujarat.

Modi also asked industry to strive to make India a global bioinformatics hub. The bioinformatics market had grown to $10 billion, he said. "India should aim at global dominance," he added.

He also invited leading bioinformatics companies to consider setting up research facilities and companies in Gujarat.

He said there was a need to invest in five areas of biotechnology -- pharmaceuticals, agriculture biotechnology, industrial enzymes, environment biotechnology and marine biotechnology. Gujarat needed investment in environment and marine biotechnology, said Modi.

He said Gujarat would play a key role in facilitating the development of the contract and clinical research sector in the state.

Gujarat has an infrastructure of corporate and medical institutions that can be ideal destinations for outsourcing. He assured investors of all possible support from the government.

Gujarat had 40 per cent of the country's pharma manufacturing sector, he said, adding that it needed financing for which the government proposed to set up a venture capital fund.