Karnataka's KEONICS to monetise land, plans convention center near Bengaluru airport

The Karnataka government has been urging startups to set up shop in Beyond Bengaluru clusters

Karnataka State Electronics Development Corporation Limited (KEONICS) has decided to monetise its land holdings in Mysuru, Mangaluru, Hubballi and Devanahalli near Kempegowda International Airport in Bengaluru.

KEONICS has identified several prime locations: 5 acres in Hebbal industrial Estate in Mysuru; 3.35 acres on Blueberry Hills Road in Mangaluru; and 37,028 sq ft in Software Technology Park of India, Hubballi. It has also earmarked 12 acres in the Hi-tech Defence Zone and Aerospace Park in Devanahalli for land monetisation.

Also read: Karnataka to receive $6.2 billion investment: Minister Priyank Kharge

KEONICS has floated tenders to select a consultant for transaction advisory services to maximise returns from these properties.  The selected firm will prepare feasibility reports, explore monetisation models, conduct market valuations, propose joint development plans and assist in legal documentation and asset transfer.

Sharath Bachegowda, chairman of KEONICS, told Moneycontrol, "KEONICS pioneered Electronics City in Bengaluru, home to major IT/ITeS firms. We plan to replicate similar infrastructure in clusters beyond Bengaluru, serving as a catalyst and anchor for startup growth."

Also read: Karnataka IT minister Priyank Kharge alleges PM Modi pressuring companies to invest in Gujarat

Pragati Maidan-like convention centre near Bengaluru airport

Bachegowda also revealed plans for a convention centre near Bengaluru airport, stating, "In Devanahalli, we are exploring a project akin to Pragati Maidan in Delhi, as Bengaluru currently lacks a large convention centre. For instance, Bangalore International Exhibition Centre (BIEC) primarily hosts exhibitions. We are now considering developing a high-end convention centre on 12 acres within the Hi-tech Defence Zone and Aerospace Park in Devanahalli."

Tech park and CoEs in Beyond Bengaluru clusters

In Mangaluru, KEONICS plans to establish a large tech park focusing on fintech. "At present, we have an incubator in Mangaluru with 120-130 seats. Our proposed tech park will have additional co-working spaces to nurture the fintech ecosystem. We also plan to allocate space for a centre of excellence (CoE) in marine technology and biology."

Karnataka IT-BT Minister Priyank Kharge and Chairman of KEONICS Sharath Bachegowda (L to R)

In Mysuru, Karnataka Digital Economy Mission has allocated space for Lahari, an advanced electronics test facility supported by the Union and state governments. "We are now exploring the establishment of another similar facility," said Bachegowda.

Also read: Karnataka govt wants startups to think beyond Bengaluru; action plan proposes incentives in other districts

“For instance, establishing major centres in places like Mangaluru, if successful, will catalyse further development around them. This is our goal. We plan to establish centres of excellence for scaling, entrepreneurship and incubation—not just for land monetisation. While profitability is important, we prioritise ventures that bring broader benefits." said Bachegowda, who is also the Congress MLA from Hoskote.

Bachegowda said, "Once we receive the report for consultants, we will finalise a feasible model, whether through joint development, joint venture or wholly managed by KEONICS. We will also decide whether it will be based on revenue sharing or area sharing."

Hubballi IT park revamp

KEONICS has also invited tenders for consultancy services to prepare detailed project reports and detailed design consultancy for structural retrofitting, repairs and renovations at the IT park in Hubballi.

“Hubballi IT park requires a comprehensive revamp. We currently have close to 3 lakh square feet of office space available. We are also exploring the possibility of establishing one of our CoEs in Hubballi." said Bachegowda.

KEONICS operates the two-decade-old IT park in Hubballi spanning 3.2 acres, offering 2.65 lakh square feet of built-up IT workspace with world-class infrastructure.

KITS to set up facilities in Beyond Bengaluru clusters

The Karnataka Innovation & Technology Society (KITS) plans to establish K-tech Common Instrumentation Facilities (CIFs) in Hubballi, Mangaluru and Mysuru. It has invited expressions of interest from firms to operate these CIFs, supporting startups and innovations for five years.

Operational since 2017 in Mysuru, Belagavi, Mangaluru, Shivamogga and Bengaluru (Rajajinagar), KITS plans to restructure existing facilities and establish two new focal centres—Mysuru and Hubballi—to boost Beyond Bengaluru clusters.

Assets from Bengaluru (Rajajinagar) and Mysuru will relocate to Karnataka State Open University, Mandakalli, Mysuru, while assets from KEONICS IT Park, Shivamogga, and Belagavi will move to KEONICS IT Park, Hubballi. KITS will provide grants to operationalise and manage these centres, which will include workshops and co-working spaces allocated to startups.

"Startups can access equipment at subsidised rates and receive training from CIF personnel on equipment handling, along with mentoring support. This initiative will benefit entrepreneurs and innovators in tier 2 and tier 3 cities," said an official.

Also read: Priyank Kharge pitches GIFT City in Karnataka, urges Union govt to fast-track approvals