Karnataka Industrial Areas Development Board floats tender for Rs 4,500-crore loan

Karnataka CM Siddaramaiah, along with Deputy CM DK Shivakumar and Industries Minister MB Patil

The Karnataka Industrial Areas Development Board (KIADB) has floated a tender for a Rs 4,500-crore term loan from banks and financial institutions.

The funds will be used for land acquisition, developing industrial areas, and implementing major water supply schemes, KIADB officials told Moneycontrol.

According to KIADB’s request for proposal (RFP), the Karnataka government has provided a guarantee for the loan.

“We are acquiring land across various locations for industrial areas while also developing infrastructure such as roads, water supply, and power,” an official said on condition of anonymity .

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“In the recently concluded Global Investors Meeting 2025, a large number of investors expressed interest in setting up industries in Karnataka. KIADB will have to provide land for large and mega industries, apart from MSMEs. KIADB requires Rs 4,500 crore for land acquisition, infrastructure, and major water supply projects to support entrepreneurs and investors.”

Karnataka received investment proposals worth Rs 10.27 lakh crore during the three-day Invest Karnataka summit in February, with a potential to generate over six lakh jobs. More than 45 percent of these investments are planned in North Karnataka, and the state aims to realize at least 70 percent of the commitments over the next two years.

KIADB, a statutory body, is responsible for promoting industries and providing essential infrastructure in the state's industrial areas.

The board recently hired Bengaluru-based RootDesign Engineers & Technocrats Pvt Ltd to prepare a Detailed Project Report (DPR) for the Rs 2,000-crore Cauvery water supply project to industrial areas around Bengaluru.

“Groundwater levels are depleting in and around Bengaluru. Industries like chip manufacturing and food processing require substantial water resources. Without adequate water supply, manufacturing investments and job creation could be impacted,” a KIADB source said.

Also read: Karnataka hires consultant to prepare DPR for Rs 2,000 crore Cauvery water project for industries in Bengaluru