New Delhi, Nov. 3: The department of biotechnology has announced a national stem cell research programme with tighter ground rules and a plan to push small industries towards biotechnology innovations.

The department will disburse Rs 25 crore in two months to a select group of medical institutions that will spearhead the stem cell programme, biotechnology secretary M.K. Bhan said.

It also plans to spend Rs 20 crore this year on a new Small Business Innovation Research Initiative (SBIRI) that will support risky but innovative early-stage research.

Bhan said nine medical institutions will pursue research on applications of stem cells ? a class of cells that lack identity but possess the unique ability to turn into any type of cell in the body.

Researchers hope to exploit stem cells to make brand new cells of the heart, brain or pancreas and implant them in persons who have had heart attacks or are suffering from diabetes.

However, only laboratories that follow “good manufacturing practices”, or GMP, would be allowed to work on stem cells, Bhan said.

Industries familiar with the GMP concept would be likely partners in the programme. “We will not work with any group without GMP facilities in stem cell production,” he said.

Bhan said the department of biotechnology has spoken to Reliance and two companies in Bangalore and Hyderabad about their possible participation in the stem cell programme.

The department is also setting up a three-tier approval system to assess the science and ethics of projects that involve the use of stem cells in human patients. Every project would need to be approved by all three committees.

The growth of stem cell research in India over the past two years has triggered concern among some researchers about the scientific soundness of various studies being carried out in patients. “We need a strong system of assessment,” Bhan said.

The Christian Medical College, Vellore, the All India Institute of Medical Sciences, Delhi, and the Postgraduate Institute of Medical Education and Research, Chandigarh, are among the nine institutions that will pursue stem cell research.

Under the SBIRI, small industries involved in life sciences will be encouraged to apply for support from the department of biotechnology to try out new, unproven research ideas that may or may not lead to innovations with commercial potential.