Karnataka to establish AI-powered integrated city near Bengaluru

Deputy CM DK Shivakumar, unveiling the design, said the township is designed around the ‘work-live-play’ model, offering a seamless ecosystem for businesses and communities.

The Karnataka government, on September 4, unveiled plans to develop the country’s first Artificial Intelligence (AI)-powered integrated city at Bidadi, around 30 km from Bengaluru.

The proposed Greater Bengaluru Integrated Township (GBIT), spread over 9,000 acres, is envisioned as the city’s second Central Business District (CBD) and a global hub for AI-driven industries.

Deputy CM DK Shivakumar, unveiling the design, said the township is designed around the ‘work-live-play’ model, offering a seamless ecosystem for businesses and communities.

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“Karnataka government is planning to establish India’s first AI-powered Integrated City at Bidadi. Over 9,000 acres have been earmarked for this, with 2,000 acres exclusively for AI-based industries and ancillaries. This will be the next central business hub of Bengaluru,” he said.

Shivakumar said that the project would be completed within three years. “A 300-metre-wide business corridor will connect GBIT with major highways, including STRR, NH-209, NH-275 and NICE Road. The project is expected to create lakhs of jobs across the IT, AI industries, start-ups and services. A ‘local-first employment policy’ will ensure priority for Karnataka’s youth,” he said.

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Planned with 70-metre arterial roads, ring roads and expressway links, GBIT aims to reduce congestion in Bengaluru by shifting a large chunk of business activity outside the city. The integrated township will encourage a walk-to-work culture, efficient public transport, and over 1,100 acres of green spaces and parks. It will also host residential clusters, schools, hospitals, cultural centres and public amenities.

“The township will be built with world-class infrastructure, but we are equally focused on sustainability. Quality of life will be enhanced with housing, healthcare, education and cultural spaces,” Shivakumar said.

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Shivakumar said the Bengaluru Metropolitan Region Development Authority (BMRDA) has readied over Rs 2,950 crore in internal funds, while an additional Rs 17,500 crore will be mobilised through financial institutions with state support. In total, the project has access to over Rs 20,000 crore for land acquisition, infrastructure and development. Compensation for landowners will begin once the acquisition is concluded.

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“Unlike earlier large-scale townships that faced resistance, the government is positioning farmers and landowners as partners in the project. A comprehensive rehabilitation and resettlement policy, in line with the 2013 Act, is being prepared. Landowners will receive annuities ranging from Rs 30,000 to Rs 50,000 per acre per year until compensation or developed sites are handed over, while landless families will receive Rs 25,000 annually,” said Shivakumar.

“GBIT will have the state’s most transparent and farmer-friendly acquisition model. Landowners will not have to run around for documents; all revenue records of the nine villages have been digitised. Farmers are partners, not just stakeholders,” Shivakumar said.

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The plan also provides housing sites for the houseless and displaced persons, along with tax exemptions and special reservations in jobs and education. Villages within the notified area will not be acquired but will be upgraded with smart-city amenities such as all-weather roads, underground electricity lines, parks, and modern healthcare and education facilities.

Shivakumar said the key highlight of the project will be the rejuvenation of Bairamangala Lake, a long-pending demand of residents. “The government has committed Rs 750–1,000 crore for lake restoration and lakefront development, including a proposed 100 MLD sewage treatment plant. The lake will be surrounded by wetlands and parks to serve as the city’s lung space”, he said.

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Shivakumar said that compensation and site allotments will be completed within a year, with the entire township scheduled for completion in three years. Calling GBIT a ‘game-changer’, Shivakumar said, “We want to create a future-ready city that attracts global investment while providing opportunities for our people. Bengaluru has shown the world what it can do in IT; now we will lead in AI.”

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