Karnataka budget sets aside Rs 57 crore to rebuild fire-ravaged Bengaluru Bio-Innovation Centre

Karnataka IT-BT Minister Priyank Kharge visits Bengaluru Bio-Innovation Centre after fire incident.

The Karnataka government has earmarked Rs 57 crore for reconstructing the fire-damaged Bengaluru Bio-Innovation Centre in the budget for the financial year 2025-26.

On January 21, 2024, a huge fire caused extensive damage to high-end lab equipment and research material, which hit biotech innovation and startup operations. The loss was estimated at around Rs 150 crore.

Located in Bengaluru’s Electronics City, the innovation centre is a key government-supported incubation hub for biotech startups and research initiatives.

In the Budget, presented on March 7 Chief Minister Siddaramaiah, who also holds the finance portfolio, the government allocated Rs 57 crore for reconstruction, with Rs 20 crore earmarked for FY26, as part of the state’s broader efforts to support the biotechnology sector.

Siddaramaiah also unveiled the Karnataka Biotechnology Policy 2024-2029, aiming to attract Rs 1,500 crore investments across MSMEs and large-scale biotech firms through Rs 220 crore in incentives.

The budget also committed Rs 13,500 crore in subsidies and financial assistance to facilitate investments across sectors such as information technology, tourism, and biotechnology. These initiatives are expected to drive economic growth and generate investments worth Rs 1 lakh crore in the state, Siddaramaiah said.

Also read: Karnataka Budget 2025: New IT policy to focus on cloud computing, emerging tech

The budget also announced a Rs 300-crore Fund-of-Funds and Rs 100 crore deep-tech corpus to strengthen innovation ecosystem and boost entrepreneurship beyond the capital city of Bengaluru.

These investments are part of the broader Local Economy Accelerator Program (LEAP), launched with a total grant of Rs 1,000 crore to encourage startups and create jobs across tier 2and 3 cities.