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Karnataka is planning a 500-acre industrial hub in Mandya with an Automotive Research Association of India (ARAI) centre, expanding an earlier 100-acre proposal. The project aims to build a combined ecosystem for automotive research, testing and manufacturing. Land parcels near Basaralu and Belluru are under review, along with other locations. The hub is expected to attract investment, support electric mobility development and create jobs. The state is also considering a separate land allocation for an Andrew Yule Company unit as part of the broader industrial push in the region.
The Karnataka government is planning to develop a 500-acre industrial hub in Mandya district with a dedicated centre of the Automotive Research Association of India (ARAI), expanding the earlier proposal of setting up a smaller standalone facility. The proposal was discussed between state industries minister MB Patil and Union heavy industries minister HD Kumaraswamy, where both sides indicated that a larger, integrated industrial cluster would be more effective than a limited research centre. Advertisement
The initial plan had identified around 100 acres for the ARAI facility, which handles vehicle testing, certification and automotive research. The state has now decided to scale up the project into a broader industrial ecosystem that can support auto component makers, electric vehicle players and related industries. This shift is aimed at improving long-term industrial activity rather than creating a single-purpose facility.
Officials have been asked to identify suitable land across Mandya district. Around 105 acres near Basaralu had earlier been considered for the ARAI centre and remains one of the key options. In addition, nearly 425 acres near Belluru on the Bengaluru-Mangaluru National Highway is being evaluated. This land was acquired earlier for industrial use, although compensation issues in some parts are still pending and may need to be resolved before development begins.
Other locations, including areas near Pandavapura and the Thubinakere industrial zone, are also being examined to ensure the final site has proper connectivity, access to infrastructure and enough space for future expansion. The government is reviewing both government-owned and private land parcels as part of this process.
The project is part of Karnataka's ongoing effort to expand industrial development beyond Bengaluru and create growth centres in other districts. Mandya, which has traditionally been an agriculture-driven district, is now being positioned for industrial growth due to its location between Bengaluru and Mysuru and its improving connectivity through highways and nearby industrial corridors.
The ARAI centre is expected to play a key role in strengthening the automotive ecosystem by supporting testing, certification and research activities. Earlier announcements had indicated an investment of around INR 500 crore for the facility. The presence of such a centre is likely to attract automobile and electric vehicle companies looking for testing infrastructure and regulatory support within the state.
Alongside this project, the state is also considering allocating around 25 to 50 acres for a manufacturing unit by Andrew Yule Company Limited, which produces transformers and other heavy electrical equipment. The government has indicated that land allocation for this unit will be processed quickly once a suitable site is finalised.
Officials are expected to submit a detailed report covering land availability, infrastructure requirements and feasibility. Based on this, further decisions will be taken on the final location and execution plan. The government has indicated that the hub is intended to bring investment, generate employment and create a stronger industrial base in the region without relying only on Bengaluru.
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