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The Karnataka government has extended the bidding deadline for the proposed INR 135 crore IT Park in Mangaluru after the project failed to receive any bids in its initial tender round. The development, planned on a 3.2-acre site at Derebail under the state's ‘Beyond Bengaluru’ initiative, is being implemented by the Karnataka State Electronics Development Corporation (KEONICS) through a public-private partnership model. Industry stakeholders have attributed the weak response to inadequate road connectivity, site-readiness concerns, stringent tender conditions and commercial terms that do not align with Mangaluru's market dynamics. The project is expected to create around 11,000 jobs and provide more than 3.5 lakh sq ft of Grade A office space, but concerns over infrastructure continue to affect investor interest.
The Karnataka government has extended the tender submission deadline for the proposed Mangaluru IT Park after the project failed to attract any bids in its first round, raising concerns over the viability of one of the state's flagship initiatives aimed at expanding technology investments beyond Bengaluru. The INR 135 crore project is planned at Derebail in Mangaluru and is being developed by the Karnataka State Electronics Development Corporation (KEONICS) under a public-private partnership (PPP) model.
The project is proposed on approximately 3.2 acres of KEONICS-owned land near Blueberry Hills Road and is part of the Karnataka government's ‘Beyond Bengaluru’ programme, which seeks to promote technology and business growth in emerging urban centres across the state. The development is expected to deliver more than 3.5 lakh sq ft of Grade A office space and generate around 11,000 employment opportunities upon completion.
The initial bidding process, which commenced late last year, closed without receiving a single bid from developers. Following the lack of response, the government reopened the tender process and subsequently extended the deadline again in an effort to attract greater participation from private sector players.
Industry representatives have maintained that the absence of bidders is not necessarily linked to a lack of demand for office space or technology investments in Mangaluru. Instead, they have pointed to several project-specific challenges, including inadequate infrastructure, poor site accessibility and commercial conditions that are viewed as unfavourable for investors.
Road connectivity has emerged as one of the primary concerns. Stakeholders noted that despite the land being earmarked for development for nearly two decades, basic access infrastructure remains inadequate. Developers have argued that the absence of reliable road connectivity reduces the attractiveness of the project for both investors and future occupiers.
Real estate and industry bodies have also raised concerns over certain tender conditions, including technical requirements and lease terms. According to industry representatives, while some provisions were modified following consultations with stakeholders, several conditions continue to be perceived as restrictive. CREDAI Mangaluru has argued that commercial terms should better reflect Mangaluru's position as a Tier-II city rather than being benchmarked against larger metropolitan markets.
Under the proposed structure, the selected developer would receive the land on a 30-year lease under the Design-Build-Finance-Operate-Transfer (DBFOT) model, with an option for extension. The project received state government approval in 2023 and has been positioned as a key component of efforts to strengthen Mangaluru's technology ecosystem.
The extension of the tender deadline reflects the government's attempt to improve participation and advance the project. However, industry stakeholders have indicated that addressing infrastructure gaps, improving site readiness and aligning commercial terms with local market realities will be critical if the proposed IT Park is to attract meaningful investor interest in future bidding rounds.
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