Karnataka notifies 17 industrial areas as Special Investment Regions

As per the notification, KIADB will serve as the Regional Development Authority (RDA) for these areas, assuming responsibility for local administration, including the assessment, imposition, and collection of property taxes.

The Karnataka Industrial Areas Development Board (KIADB) has notified 17 major industrial areas across the state as Special Investment Regions (SIRs), with the board assuming the role of the Regional Development Authority (RDA) for these areas, taking charge of local administration, including assessment, imposition, and collection of property taxes.

The notified regions include: Obadenahalli (Doddaballapur Industrial Area), Dobaspet, Bidadi, Thandya, Hebbala (Mysuru), Vasanthanarasapura (Tumakuru), Gowribidanur, Harohalli, Hassan Growth Centre, Badanaguppe-Kellampalli (Chamarajanagar), Kadechur (Yadgiri), Raichur Growth Centre Industrial Area, Narasapura Industrial Area, Hi-Tech Defence & Aerospace Park, Noubad Housing & Autonagar, Kolhar Phase-2 Industrial Area (Bidar), Bommasandra-Jigani Link Road Industrial Area, and Mummigatti Industrial Area.

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“KIADB will begin collecting property taxes in these SIRs effective from April 1, 2025” reads a notification.

Bruhat Bengaluru Mahanagara Palike (BBMP), municipal corporations, town municipalities, and gram panchayats have been directed to cease tax collection from units located within the notified SIRs. “Entrepreneurs and allottees within these regions are now required to remit property tax payments exclusively to the KIADB” the notification said.

The Special Investment Region (SIR) Act was enacted to facilitate the establishment, operation, regulation, and management of large, mega, and super-mega investment regions and industrial areas in Karnataka. Under the provisions of the Karnataka Special Investment Region Act, 2022 (Karnataka Act 5 of 2023), KIADB has been appointed as the apex authority to administer these zones.

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The state government had introduced the Karnataka Special Investment Region Bill in 2022, with rules framed in 2024. The objective was to simplify investment procedures and position Karnataka as a global manufacturing hub.

The legislation empowers the government to designate existing industrial regions as Special Investment Regions, define their geographical boundaries, and promote integrated economic development. KIADB is authorised to approve land use plans, sanction development projects, and grant permissions for economic activities within these regions.