Beyond Bengaluru: Karnataka plans integrated technology park in Hassan

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• Karnataka plans a tech park in Hassan to boost IT and startups beyond Bengaluru
• The park will feature offices, retail, a multiplex, hotels, and other amenities.
• Development will be phased, repurposing unused granite unit land

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In a push to expand Karnataka’s technology footprint beyond Bengaluru, the state government is planning to develop an integrated technology park in Hassan on land owned by Karnataka State Minerals Corporation Ltd (KSMCL).

KSMCL has invited a tender to appoint a comprehensive project development consultant (CPDC) for the proposed technology park on around 14-acre parcel along the Arasikere Road in Katihalli village of Hassan district.

It will include a technology park on a "warm-shell basis" (office spaces with basic civil, electrical, HVAC and fire-safety infrastructure) to cater to local business requirements, IT and IT-enabled services including e-commerce firms, startups, shared workspaces and business centres. The project will also include a retail hypermarket with a multiplex, serviced apartments, convention centres, hotels, food courts, play arenas and other amenities.

Also read: Beyond Bengaluru: Karnataka to set up second bioinnovation centre in Ballari

“The idea is to repurpose underutilised land and create economic activity outside Bengaluru by supporting IT, startups and allied services,” a senior KSMCL official told Moneycontrol, adding the project would be developed in a phased manner.

Granite unit shut, land to be redeveloped

The land earlier housed KSMCL's granite cutting and polishing unit set but operations were discontinued.

“Since the granite unit has remained non-operational for years, the corporation decided to explore alternative uses for the land,” the official said. A preliminary feasibility report prepared by a consultant subsequently recommended developing an integrated technology park on the site.

Also read: Karnataka’s 'beyond-Bengaluru push' attracted 15 firms, created over 1,600 jobs in FY25

Phased development planned

According to the proposal, the first phase will focus on creating trunk infrastructure for the entire 14-acre site, with an estimated total built-up potential of about 6.1 lakh square feet. It will also include a retail hypermarket with a multiplex spanning around 1.29 lakh square feet, along with a commercial or office block of about 52,700 square feet.

Also, read: Karnataka cabinet clears IT policy 2025-2030, thrust on ‘Beyond Bengaluru’ clusters & AI

“The development of the remaining land will depend on market demand and the performance of the initial phase,” the official, who spoken on condition of anonymity, said.

The selected consultant will be responsible for the entire lifecycle of the project, including master planning, architectural and engineering design, preparation of detailed project reports, financial modelling, transaction advisory and construction supervision. The consultant will also be required to suggest revenue models, assess the project’s financial viability and explore public-private partnership options.

Also, read: Karnataka to reimburse rent, property tax, power duty to lure IT firms outside Bengaluru

Focus on non-Bengaluru growth

The proposed park is part of the state government’s broader push to encourage IT and startup activity in tier-2 cities. Hassan, located about 180 km from Bengaluru, has been identified as a potential growth centre due to its connectivity and availability of government land.

“This is in line with the state’s strategy to decongest Bengaluru and promote balanced regional development,” another official familiar with the project said.

KSMCL is a Karnataka government undertaking engaged in mining activities. Hassan technology park is among the PSU’s larger diversification initiatives outside the mining sector.

In October 2025, Karnataka invited bids to develop a Rs 135-crore commercial office technology park in Mangaluru under the PPP model, expected to generate over 11,000 direct and indirect jobs. The project, floated by the Karnataka State Electronics Development Corporation (KEONICS) under the ‘Beyond Bengaluru’ initiative, will be developed under the DBFOT model on a 3.285-acre site in Derebail, close to NH-66. However, a tepid response to the initial tender may force KEONICS to re-invite bids with relaxed conditions.

Also read: Karnataka floats tender for Rs 135 crore Mangaluru tech park that’ll create 11,000 jobs