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Karnataka pursuing new industrial projects in north districts under ‘Beyond Bengaluru’ policy push

#Builders & Projects#Industrial#India#Karnataka
Last Updated : 11th Mar, 2026
Synopsis

The Karnataka government is in discussions with multiple companies to establish new industrial projects in the northern districts of Vijayapura and Bagalkote as part of efforts to reduce regional imbalances in development. State Industries Minister M B Patil informed the Legislative Council that the state's 2025-30 industrial policy continues the 'Beyond Bengaluru' strategy aimed at promoting investment outside the capital. The government is currently in talks with around nine to ten companies for potential projects in the region. Among the developments, a Reliance Industries facility at Kembhavi is scheduled to begin construction soon and is expected to generate about 1,600 jobs. Other proposed investments include an agricultural processing unit by Viterra and a wind turbine rotor-blade manufacturing facility by Suzlon Energy, reflecting efforts to diversify the industrial base in north Karnataka.

The Karnataka government is pursuing several new industrial projects in the northern parts of the state as part of its strategy to reduce regional disparities in development and encourage investments outside Bengaluru.


Responding to a question in the Legislative Council earlier this week, Minister for Large and Medium Industries M B Patil said the government has initiated discussions with multiple companies to establish industrial facilities in Vijayapura and Bagalkote districts, with the aim of generating employment and strengthening the region's industrial base.

Patil stated that the initiatives are being implemented under the state's industrial policy for 2025-30, which continues the 'Beyond Bengaluru' campaign designed to promote balanced regional development.

Under the policy framework, Karnataka has been divided into three zones based on levels of industrial development. Zone-1 consists of relatively underdeveloped regions and offers the highest level of incentives to attract investors. Zone-2 provides moderate incentives, while Zone-3, which includes Bengaluru and surrounding areas, offers comparatively limited incentives.

The minister said the government has been in discussions with around nine to ten companies regarding potential industrial investments in north Karnataka since he assumed charge of the industries portfolio.

Among the projects currently in progress, construction is expected to begin shortly on a facility by Reliance Industries at Kembhavi. The project is expected to generate around 1,600 jobs once operational.

In addition to the Reliance project, international agribusiness firm Viterra is establishing a processing unit in the region. The facility will focus on processing pulses such as tur dal, which are widely cultivated in districts including Vijayapura and Kalaburagi. The project is expected to support agricultural value chains and provide better market opportunities for local farmers.

Renewable energy company Suzlon Energy is also planning to set up a rotor-blade manufacturing facility for wind turbines in the region, reflecting the government's efforts to diversify the industrial profile of north Karnataka beyond traditional sectors.

Patil noted that industries such as cement and sugar have historically dominated the local economy, but the state government is seeking to expand the industrial mix by attracting investments in manufacturing, agribusiness and renewable energy.

According to the minister, at least two or three projects have already been confirmed, while others are awaiting approval of incentives from the cabinet sub-committee.

The state government is also implementing recommendations from the Nanjundappa Committee Report to provide additional incentives for investments in backward regions. Areas categorised as 'more backward' receive an additional 3% incentive, while 'most backward' areas are eligible for an additional 5% incentive over and above the zonal benefits.

During the discussion, BJP MLC Prahlad Pujar raised concerns about the lack of industrial development in north Karnataka and highlighted employment challenges faced by residents displaced by irrigation and submergence projects in Bagalkote and Vijayapura districts.

Responding to these concerns, Patil said the government has adequate land banks available for industrial development and remains open to collaborating with the Union government to attract large-scale projects such as defence manufacturing units or fertiliser plants.

He added that the state had recently responded positively to a proposal from the Union government to establish a testing facility in Mandya, agreeing to provide 105 acres of land against a request for 100 acres.

Source - PTI

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