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The Bengaluru magnet: Why 50% of Karnataka’s Rs 1.87 lakh crore projects are still crowding into just 4 districts
Despite state-led efforts to develop the Kittur and Kalyana regions, data from the Karnataka Budget Session shows that Bengaluru Urban, Rural, Kolar, and Tumakuru remain the primary targets for investors.
Sources in the Industries Department said firms are preferring Bengaluru and surrounding districts (Image generated using AI).
Despite incentives announced by the Karnataka government to spur industrial development in the Kalyana and Kittur regions, Bengaluru and surrounding districts have remained hotspots for investors to implement their projects.
According to data from the Large and Medium Industries Department, more than half the 1,423 projects cleared by the State High Level Clearance Committee (SHLCC) and State Level Single Window Clearance Committee (SLSWCC) between 2023-24 and 2025-26 were concentrated in four districts: Bengaluru Urban, Bengaluru Rural, Kolar and Tumakuru.
The Karnataka government had cleared these projects with a proposed investment of Rs 1.87 lakh crore. A little over a third of this was proposed in Bengaluru Rural district, where the government has set up numerous industrial areas due to a paucity of land in Bengaluru Urban district. Investors have pledged Rs 65,203 crore for 509 projects in Bengaluru Rural, expected to generate 1.19 lakh jobs.
Coming in second in terms of projects approved was the Kolar district, with 139 projects and a proposed investment of Rs 9,743 crore. In third place was Tumakuru with 121 projects with a proposed investment of Rs 4,720 crore. Although Bengaluru Urban and Mysuru had fewer projects approved than the Tumakuru district, with 68 and 71 projects respectively, the promised investment for these projects was Rs 18,437 crore for Bengaluru Urban and Rs 9,655 crore for Mysuru.
Of the 1,423 projects cleared by SHCC and SLSWCC, only 26 were implemented, while 1,392 were under various stages of implementation, according to data tabled in the Legislative Council during the ongoing Budget Session of the legislature. Five projects were dropped by the investors, according to the reply tabled by Industries Minister M B Patil.
Sources in the Industries Department told The Indian Express that, though the government was trying to attract investment to the state’s backward regions, companies preferred Bengaluru and the surrounding districts.
“Yet, districts such as Kalaburagi are getting investment due to the concessions offered by the government. Investment proposed in backward districts like Kalaburagi (Rs 7,916 crore) and Vijayapura (Rs 5,385 crore) is encouraging,” the official said.
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Regarding the low implementation rate, the official said that companies typically take 3 to 5 years to complete a project. “The implementation percentage will increase in the coming months,” the official added.
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