Till 1995-96, this project was funded under the Marine Research and Development Programme during 1996-97. Phase-III of the National Project on Development of Potential Drugs from the Sea was taken up for implementation as a separate programme. Out of 17 potential marine organisms identified to be having properties as anti-fertility, anti-microbial, anti-viral, anti-diabetic,anti-malarial, anti- hypertensive, anti-inflammatory, anti-anxiolytic, anti-amoebic and larvicidal agents, 5 organisms which showed potent activity as anti-diabetic, anti-viral, anti-amoebic, anti-anxiety and larvicidal agents were taken up for developing herbal drugs at least one within 2 years. In addition, collection and identification of new organisms, chemicals and biological evaluation of the organisms and the extracts obtained therefrom, maintenance of the repository of marine organisms, etc. were also continued.