Karnataka plans logistics park near Bengaluru airport, floats tender

The Karnataka government plans to set up a logistics park at Balepura, near Kempegowda International Airport in Bengaluru, and floated tender for the facility, which has been hit by delays, in the public private partnership (PPP) model.

Karnataka State Industrial & Infrastructure Development Corporation Limited (KSIIDC) recently floated a tender for the logistics facility and related infrastructure under the design, finance, build, operate and transfer (DFBOT) model.

Also, read: Bengaluru Signature Business Park near airport taking shape after 16 years; tenders floated for development under PPP

The selected developer will build an integrated logistics facility, which may include a logistics park, standalone warehouses, cold storage, or manufacturing units on the 10-acre site and must commence operations within 36 months of receiving the letter of award (LoA).

The minimum development obligation is a built-up area of at least 1.8 lakh sq ft under the sanctioned FAR (Floor Area Ratio). Though proposed in the Karnataka State Logistics Plan-2022, the park has been delayed due to various reasons.

Also, read: PM Modi to inaugurate two stretches of Bengaluru Satellite Town Ring Road on March 11

The site, in the northern quadrant of Bengaluru Rural district, is about 18.6 km from the airport and is accessible through the Bengaluru Satellite Ring Road (NH-648).

Devanahalli is emerging as an industrial hub, with Foxconn’s 300-acre iPhone assembly plant, Project Elephant, in the ITIR region spanning Doddaballapur and Devanahalli taluks, expected to be operational in a few months.

Bengaluru airport handled record 502,480 MT of cargo in FY25, 14 percent more than the previous year. A 21 percent rise in international cargo (321,418 MT) and a 4 percent rise in domestic cargo (181,062 MT) fuelled the growth.

Air India SATS (AISATS) recently inaugurated an Rs 200-crore logistics park at Bengaluru airport, and Menzies Aviation, in partnership with BIAL, launched a 245,000 sq ft greenfield domestic cargo terminal, one of India’s largest by capacity.

KSIIDC officials said industrial and logistics activity is in the rise in the area, with significant freight movement along NH-648. “The nearby developments include a 2 lakh sq ft warehouse by BVL Group, the Aerospace SEZ, an IT park, and the Devanahalli Business Park. Residential growth is also picking up along a 3-km stretch from Devanahalli to Hoskote,” an official said.

Also, read: Air India SATS launches logistics park at Bengaluru airport

KSIIDC is offering the 10-acre plot on a 30-year lease, extendable by another 30 years.
Bidders will have to quote a one-time, non-refundable premium of at least Rs 85 lakh per acre (ex-GST) — a minimum of Rs 10 crore for the site. The selected bidder will pay an annual lease rent of Rs 1 lakh an acre for the first 30 years, and Rs 4.2 lakh thereafter, both excluding GST. Bids below the minimum threshold will be rejected.

KSIIDC to hire consultant for ‘vision document’

KSIIDC also plans to appoint a consultancy firm to prepare a vision document, identifying new business opportunities and ways to boost revenue. The consultant will assess core divisions —aviation, infrastructure, recovery, administration, and finance — and draft a roadmap for growth.

“As the nodal agency for greenfield airports and infrastructure in Karnataka, KSIIDC aims to enhance its role through PPPs and joint ventures. The vision document will also cover capacity-building, manpower planning, and strategies to improve the corporation’s efficiency and financial strength over the next five years,” the official added.

Also, read: Tech powers Bengaluru airport's cargo terminal, boosts security, cuts paperwork