Karnataka Government Reopens Tender for Mangaluru IT Park After First Round Draws No Bidders

Mangaluru, May 7: For the second time in five months, the state government has reopened bidding for its proposed IT Park in Mangaluru after the first round failed to attract even a single bidder. A second round is now under way and will close on May 22, with only one bidder showing interest so far.

Project Details

The IT Park is proposed on 3.2 acres near Blueberry Hills Road in Derebail and is part of the state's 'Beyond Bengaluru' initiative. The tender has been floated by Karnataka State Electronics Development Corporation (KEONICS). Under the tender, the selected bidder will get the land on a 30-year lease under the Design-Build-Finance-Operate-Transfer model, with an option to extend it by another 30 years.

Why Bidders Are Staying Away

Industry stakeholders said the lack of response has less to do with demand and more to do with conditions on the ground. Connectivity to the site remains one of the biggest deterrents - despite the land being available for around two decades, even basic road access has not been put in place. Stringent technical requirements and commercial terms that do not reflect the local market have also made the project difficult to bid for.

Industry Demands

Vinod Pinto, president of CREDAI Mangaluru, said the body had flagged concerns over high rentals, noting that bidders expected more competitive lease terms since the land is government-owned. He said Mangaluru should be treated as a tier-2 city in pricing and policy, instead of being benchmarked against Bengaluru or larger metros. A realtor involved in IT workspace development said weak basic infrastructure has hurt investor confidence.

Way Forward

Stakeholders said unless the government fixes basic infrastructure gaps, simplifies technical requirements and aligns rentals with local market conditions, the project may continue to struggle to find takers. Mangaluru was home to one of the earliest STPI facilities, but the city's IT ecosystem has failed to keep pace with Bengaluru.