With Special Investment Region tag, Karnataka bets big on Devanahalli’s growth surge

Bengaluru: From a quiet sericulture village on the outskirts of the city in the 1990s, Devanahalli has transformed into one of Bengaluru's most powerful growth engines, rapidly evolving into a vibrant hub for employment, industry, and investment. Ever since the start of operations at Kempegowda International Airport (KIA) — one of the busiest airports in India — the region has witnessed a dramatic economic shift over the past two decades.With the proposed Airport City, Information Technology Investment Region (ITIR), Aerospace Park, and a wave of high-value residential developments, Devanahalli has emerged as the epicentre of north Bengaluru's expansion. The steady influx of global manufacturers, technology firms, and allied industries has not only altered the skyline but also generated thousands of jobs, reinforcing its position as a high-growth corridor.
Further strengthening the region's growth trajectory, the state govt recently notified the ‘Devanahalli Special Investment Region' (SIR), spanning 3,117.9 acres across 13 village panchayats. The initiative by the Karnataka Industrial Areas Development Board (KIADB) aims to consolidate and upgrade key industrial clusters — including Devanahalli General Phase 1, Devanahalli General Industrial Area Phase 2 and Adhinarayana Hosahalli Phase 2 — into globally competitive economic hubs equipped with world-class infrastructure and civic amenities.According to KIADB officials, the SIR notification addresses long-standing infrastructure concerns raised by industrialists and entrepreneurs. The industrial townships will now be withdrawn from the administrative control of local bodies and brought under direct state govt oversight. "Often, the local bodies neglected development in these areas despite industries paying taxes. This hindered production and manufacturing activities. By notifying them as SIRs, the areas will be placed under the direct monitoring of the state govt," a KIADB official said.Officials added that jurisdictional overlaps had also created operational hurdles, citing recent property tax notices issued by two village panchayats to the Taiwan-based Foxconn. "Such issues arise because of overlapping authority, which the SIR framework seeks to address," the official noted.Under the SIR framework, the state can notify an industrial area exceeding 2,500 acres — or 1,250 acres in the case of industrial zones — as an SIR. Commerce and industries minister MB Patil said, "The main objective of granting SIR status is to transform these regions into centres of economic activity supported by premium infrastructure, modern civic amenities, centres of excellence, and a proactive policy framework."Once notified, the state govt assumes full authority to regulate and develop the region. "Administratively, each SIR will be governed by an apex body approved by KIADB and will report to a regional development authority (RDA), project development agencies under the govt, or special purpose vehicles, as assigned," a KIADB official said, adding that the model mirrors the Electronics City Industrial Township Authority.The RDA will function as the local planning authority, overseeing infrastructure, taxation, and regulation within the SIR. While the apex authority will serve as a single-window system for investors, the RDA will assess and collect taxes, with 30% remitted to the parent local body.