Daijiworld Media Network – Mangaluru
Mangaluru, May 20: The Karnataka government’s ambitious Mangaluru IT Park project has once again been put up for tender after receiving no response in the first round of bidding. The second round of the bidding process has now commenced.
The Rs 135-crore project is proposed to be developed on 3.2 acres of land near Blueberry Hills Road at Derebail in Mangaluru. Located around one kilometre from National Highway 66, the project is part of the state government’s ‘Beyond Bengaluru’ initiative aimed at expanding IT and BT investments across Karnataka. The tender has been floated by Karnataka State Electronics Development Corporation (KEONICS).
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The first bidding process had begun on December 15, 2025, and concluded a month later without receiving even a single application. Sources stated that in the second round, which is scheduled to close on May 22, only one bidder has so far shown interest.
IT sector experts and industry representatives have cited several reasons for the lack of response to the project. Poor road connectivity has emerged as a major obstacle. Since the land is being offered on a long-term lease basis, proper approach road development has not taken place, which is considered one of the key concerns.
In addition, stringent tender conditions are said to be discouraging bidders. Although some conditions have reportedly been relaxed, several hurdles still remain. Industry sources also pointed to unattractive financial terms as another reason for the low interest. Since the land belongs to the government, investors had expected lower rental rates, but the quoted rates are reportedly much higher.
According to real estate sector experts, inadequate infrastructure has affected investor confidence. Though Mangaluru has some of the country’s early and well-developed facilities, IT entrepreneurs believe the city still lacks an ecosystem comparable to Bengaluru.
According to CREDAI Mangaluru president Vinod Pinto, rental rates are on the higher side and should instead be fixed considering Mangaluru as a Tier-2 city. He argued that adopting rental structures similar to Bengaluru or other metro cities would not be appropriate.
IT experts said that if the IT Park project is to succeed in Mangaluru, providing proper road connectivity is essential. They also stressed the need to simplify tender conditions, reduce rental rates, and formulate policies suited to the local market.
IT expert Ramesh Bengaluru said these measures are crucial to attracting investors and ensuring the success of the proposed IT Park.