Bengaluru: While the state govt is pushing to disperse industrial growth beyond Bengaluru, especially into North Karnataka, fresh data reveals that land allotments by Karnataka Industrial Area Development Board (KIADB) remain overwhelmingly skewed in favour of districts surrounding the capital.
Between 2022 and 2024, KIADB allotted only 4,985 acres of land for industrial use — just over a quarter of the nearly 18,000 acres it acquired across the state. Of this, more than 3,000 acres were allocated in six districts in and around Bengaluru, signalling a clear concentration of investment in the southern belt.
Industries department figures from the past three years show over 2,800 firms or units received land across 22 districts. A striking 35% of the allotted land — approximately 1,784 acres — lies in Bengaluru Rural district.
KIADB has no land in Bengaluru Urban, but it holds around 1,600 acres in Bengaluru Rural. An official from the department said allotments are granted through contract agreements or sale deeds, and firms are required to implement their projects within three years.
“Since most firms prefer areas surrounding Bengaluru to establish their industry or companies, the allotment of land in this area is huge compared to other parts of the state,” the official said.
MG Balakrishna, president, Federation of Karnataka Chambers of Commerce & Industries (FKCCI), echoed this view. “The govt is offering land near Bengaluru for industrial development. So, investors prefer to locate new industries or expand on existing businesses here,” he said.
The shift is visible on the ground. “Some industries from Peenya Industrial Area are shifting their operations to Dabbaspet in Bengaluru Rural district after the govt offered land in Bengaluru Rural, Tumakuru, and nearby districts,” Balakrishna said.
He cited the case of electronics major Foxconn to explain the region’s appeal. “Foxconn preferred a location near Devanahalli, which is near Kempegowda International Airport. Once it began operations, many other firms began setting up their units there. So, the allotment of land to industries and companies is high in and around Bengaluru.”
As demand continues to rise, the govt is gearing up to acquire more land. “With demand for land in Bengaluru region soaring, the govt has begun issuing preliminary notifications to acquire more land from farmers,” Balakrishna said.
Industries department data shows 3,043 acres were allotted in Bengaluru Urban, Bengaluru Rural, Ramanagara, Tumakuru, Chikkaballapur, and Kolar districts. The remaining 1,942 acres were distributed across 16 other districts, including Bidar, Dharwad, Vijayapura, Belagavi, Bagalkot, Mysuru, Chamarajanagar, Mandya, Davanagere, Shivamogga, Hassan, Kalaburagi, Yadgir, Vijayanagar, Dakshina Kannada, and Udupi.
Quote
We developed three new industrial areas in Bengaluru Rural, including the Information Technology Investment Region (ITIR) near Devanahalli. The rural district is very close to the city and has better infrastructure, which attracts more investors
S Selvakumar | principal secretary, commerce and industries department
GFX
Who got what
District
Acres
Bengaluru Rural
1,784
Ramanagara
528
Tumakuru
340
Bengaluru Urban
168
Chikkaballapur
165
Kolar
58
Source: Department of large and medium scale industries