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Karnataka reopens Mangaluru IT park tender after no bids in first round

#Infrastructure News#Infrastructure#India#Karnataka#Mangalore
Last Updated : 16th May, 2026
Synopsis

The Karnataka government has reopened the tender process for the proposed Mangaluru IT Park after the initial round received no bidders. The project, planned on a 3.2-acre KEONICS land parcel in Derebail, Mangaluru, is being developed under a public-private partnership model with a long-term lease structure. The initiative is part of the state’s broader effort to expand IT development beyond Bengaluru under its “Beyond Bengaluru” programme. Despite structured lease terms and planned infrastructure support, the lack of participation has led authorities to invite fresh bids from developers.

The Karnataka government has restarted the bidding process for the proposed IT Park in Mangaluru after the earlier tender did not attract any participation from developers. The project is being implemented by the Karnataka State Electronics Development Corporation Limited (KEONICS) under a public-private partnership (PPP) framework.


The IT Park is planned on a 3.2-acre land parcel located in Derebail along Blueberry Hills Road in Mangaluru. It is part of the state’s broader strategy to decentralise technology growth and reduce dependence on Bengaluru by encouraging IT investments in other regions of Karnataka, especially the coastal belt.

The initial tender was floated under a design-build-finance-operate-transfer (DBFOT) model. It offered developers a long-term lease arrangement of around 30 years, with the possibility of extension depending on terms and performance. However, despite this structure and the expected opportunity for IT and IT-enabled services (ITeS) development, the first round of bidding saw no response from private players.

Following the lack of participation, authorities have reopened the tender with the same project framework. The plan continues to focus on developing modern office infrastructure, which can support IT companies, startups, and service-based operations. The project is also expected to include basic supporting facilities required for a functional IT hub.

The initiative has been positioned as part of Karnataka’s long-term development approach to promote employment generation and investment inflow in non-metro regions. Mangaluru has been identified as a potential growth centre due to its connectivity, educational institutions, and emerging business environment.

At the same time, industry discussions have pointed to challenges that may have affected earlier participation, including commercial viability concerns and infrastructure readiness in the region. These factors are expected to remain important as the government moves ahead with fresh bidding.

The project continues to be a part of the state’s “Beyond Bengaluru” vision, which aims to distribute IT growth more evenly across Karnataka and strengthen emerging technology clusters outside the capital city.

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