MANGALURU: The state government has reopened bidding for its proposed IT Park in Mangaluru for the second time in five months. The initial round attracted no bidders, raising concerns over the Rs 135-crore project intended for public land.
The IT Park is planned on 3.2 acres near Blueberry Hills Road in Derebail as part of the state’s ‘Beyond Bengaluru’ initiative. The tender is being managed by the Karnataka State Electronics Development Corporation (KEONICS).
Initially opened on December 15 and closed a month later without interest, the second round of bidding is currently ongoing and will conclude on May 22. Reports indicate that only one bidder has expressed interest thus far.
Poor Infrastructure Discourages Bidders
Industry experts suggest that the lack of responses is less about market demand and more about challenging conditions on-site. They cite a mix of stringent technical requirements and inadequate infrastructure, as well as commercial terms that do not match local market standards.
Connectivity is a major concern; despite the land being available for nearly two decades, basic road access remains unaddressed.
Several stipulations within the tender have made bidding difficult. Although local industry representatives have negotiated some relaxations, many restrictive conditions persist.
Mangaluru Needs to be Seen as a Tier-2 City
A real estate developer involved in IT workspace projects noted that insufficient basic infrastructure has diminished investor confidence. While Mangaluru boasts one of the earliest Software Technology Parks of India, its IT ecosystem struggles to compete with Bengaluru. He emphasized that the focus should be on ensuring reliable road connectivity rather than large-scale expansion.
Vinod Pinto, president of CREDAI Mangaluru, mentioned that high rental rates remain a barrier, as bidders expect more competitive leasing terms due to the government ownership of the land. He advocates for treating Mangaluru as a tier-2 city in terms of pricing and policies instead of comparing it to Bengaluru or larger metropolitan areas.
The successful bidder will receive the land on a 30-year lease under the Design-Build-Finance-Operate-Transfer model, with an extension option for another 30 years. Stakeholders believe that without addressing infrastructure gaps, simplifying technical requirements, and aligning rental rates with local market conditions, interest in the project may remain low.
