For the second time in five months, the state government has reopened the bidding process for its proposed IT Park in Mangaluru, following the first round that failed to attract even a single bidder, which raises concerns regarding a Rs 135-crore project intended for public land.
The IT Park is planned to be established on 3.2 acres near Blueberry Hills Road in Derebail and is part of the state’s ‘Beyond Bengaluru’ initiative. The tender has been issued by the Karnataka State Electronics Development Corporation (KEONICS). The initial bidding round commenced on December 15 and concluded a month later without any participants. A second round is currently in progress and will close on May 22.
According to sources, only one bidder has expressed interest thus far. Industry stakeholders have indicated that the lack of response is more related to the conditions on the ground rather than demand. They have highlighted a combination of stringent technical requirements, inadequate site readiness, and commercial terms that do not align with the local market.
Connectivity to the site remains one of the most significant obstacles. Despite the land being available for nearly two decades, stakeholders have noted that even basic road access has not been established. Sources have indicated that several conditions outlined in the tender have made the project challenging to bid for. Although local industry representatives have succeeded in persuading the government to relax some clauses, many restrictive requirements persist.
A realtor engaged in IT workspace development has stated that weak basic infrastructure has undermined investor confidence. He remarked that while Mangaluru is home to one of the earliest Software Technology Parks of India (STPI) facilities, the city’s IT ecosystem has not kept pace with Bengaluru. What Mangaluru requires, he emphasized, is reliable road connectivity rather than extensive expansion.
Vinod Pinto, the president of CREDAI Mangaluru, expressed that the organization has raised concerns regarding elevated rental prices, highlighting that bidders anticipate more favorable lease conditions due to the land being owned by the government. He emphasized that Mangaluru ought to be regarded as a tier-2 city in terms of pricing and policy, rather than being compared to Bengaluru or larger metropolitan areas. According to the tender, the chosen bidder will receive the land on a 30-year lease under the Design-Build-Finance-Operate-Transfer model, with the possibility of extending it for an additional 30 years.
Stakeholders indicated that unless the government addresses fundamental infrastructure deficiencies, streamlines technical requirements, and adjusts rental prices to reflect local market conditions, the project may continue to face challenges in attracting interest.
