Karnataka likely to set up SPV for Knowledge, Healthcare, Innovation and Research city

The state is likely to set up a Special Purpose Vehicle (SPV)  for the project.  "It's also necessary to establish an SPV to ensure coordination between the government and the master developer of the proposed city. Further, six types of incentive measures were reviewed to encourage investment," said Patil.

Emphasising that the focus in the KHIR-City would be on research, innovation, and the development of prototypes, Patil said that no manufacturing activities would take place in the KHIR-city.

"In the first phase, the city will occupy about 1,000 acres, and experts have suggested a gradual development, taking up 200-300 acres at a time," he said.

Patil highlighted that the entire investment for the KHIR-City would come from private players, with the government contributing in the form of land equity. He also said that studies of similar cities in different countries around the world had been considered.

"Stakeholders have recommended that the proposed city should have excellent connectivity, including road, metro, and suburban rail, and should be reachable within an hour from Bengaluru city," he explained.

According to the minister, the proposed allocation of land usage in the city includes 15 percent for educational institutes like research universities, 15% for healthcare facilities, 20 percent for R&D centres and corporate offices of various industries, 10 percent for startup spaces, 20 percent for residential complexes, 15 percent for commercial and retail areas, and 5 percent for government offices and utilities.

"It has been suggested that 35 percent of the 1,000 acres should be reserved for green cover, with 5 percent each allocated for roads and civic amenities. The remaining 55 percent of the allotted land should be utilized for the KHIR City," he added.

Karnataka minister MB Patil invites Temasek Holdings to invest in KHIR-City