Mangaluru: The Karnataka Cabinet has approved the development of a commercial office tech park on 3.285 acres of land along Blueberry Hills Road, Derebail, in Mangaluru. The project will be executed under the Public-Private Partnership (PPP) model to boost the coastal city’s growing technology and business ecosystem.

Announcing the decision on Thursday, Karnataka IT and BT Minister Priyank Kharge said that the project will be developed on a Design, Build, Finance, Operate, and Transfer (DBFOT) basis — a model widely adopted to attract private investment in infrastructure development.

“The Cabinet has cleared the proposal to develop survey numbers 129 and 113 at Blueberry Hills Road, Derebail, Mangaluru Taluk, Dakshina Kannada District, into a commercial office tech park,” Kharge stated after the meeting.

The project is part of a larger strategy by the state government to decentralise IT growth beyond Bengaluru and promote Tier-II cities like Mangaluru, Mysuru, and Hubballi as emerging technology hubs.

KEONICS to lead the project execution

The land in question belongs to the Karnataka State Electronics Development Corporation Limited (KEONICS), a state-run enterprise under the Department of IT, BT and S&T. KEONICS will spearhead the tech park project in collaboration with private partners.

The DBFOT model implies that the private developer will be responsible for the design, construction, financing, and operation of the project during a concession period, after which it will be transferred back to KEONICS or the state government.

Officials said the project is expected to attract information technology companies, startups, and ancillary industries, generating employment opportunities for local talent while strengthening Mangaluru’s position as a coastal IT destination.

Monetisation of KEONICS land holdings

The move is part of a broader land monetisation plan by KEONICS, first reported in July 2024, aimed at utilising underused land assets to fund infrastructure and technology initiatives across Karnataka.

Moneycontrol had earlier reported that KEONICS had identified several prime locations for monetisation:

  • 5 acres in Hebbal Industrial Estate, Mysuru
  • 3.35 acres on Blueberry Hills Road, Mangaluru
  • 37,028 sq ft in Software Technology Parks of India, Hubballi
  • 12 acres in the Hi-Tech Defence Zone and Aerospace Park, Devanahalli, near Kempegowda International Airport, Bengaluru

The Mangaluru tech park project marks the first among these sites to move into the implementation phase following Cabinet approval.

A push for regional tech hubs

With Bengaluru nearing saturation in terms of real estate and infrastructure, the Karnataka government has been aggressively promoting Tier-II and Tier-III cities as alternative destinations for the IT and innovation economy.

Mangaluru, with its proximity to an international airport, seaport, and strong educational ecosystem, has long been identified as a city with immense potential for IT, fintech, and startup growth.

“The government’s goal is to create employment opportunities locally so that young professionals from coastal Karnataka do not have to migrate to Bengaluru for tech jobs,” an official from the Department of IT and BT said.

The proposed commercial office tech park is expected to house office complexes, innovation centres, and co-working spaces, making it suitable for both established technology firms and new-age startups.

Investment potential and timeline

Officials said the total project cost and private investment quantum will be finalised following a Request for Proposal (RFP) process to be floated by KEONICS in the coming months.

Once bids are awarded, the project is expected to be developed within 24 to 30 months. The state anticipates that the new facility will serve as a catalyst for economic growth, job creation, and innovation in the Dakshina Kannada region.

Strengthening Mangaluru’s economic landscape

Mangaluru, already home to major educational institutions like NITK Surathkal and St. Aloysius College, has seen increased interest from tech firms and investors in recent years. The city’s strong infrastructure, skilled workforce, and connectivity make it an attractive destination for companies seeking expansion beyond metropolitan areas.

The upcoming tech park aligns with the Karnataka Digital Economy Mission’s (KDEM) focus on promoting Beyond Bengaluru clusters — with Mangaluru designated as one of the key nodes under the initiative.

If implemented successfully, the Blueberry Hills Road project could pave the way for more PPP-based technology infrastructure developments across the state.