Karnataka to invest Rs 1.5 lakh crore in Bengaluru infrastructure; aims to promote GCCs in tier-2, tier-3 cities

Bengaluru: Karnataka will invest Rs 1.5 lakh crore in Bengaluru's infrastructure while simultaneously promoting investments in tier-2 and tier-3 cities to create new growth centres beyond the state capital, chief minister DK Shivakumar said on Wednesday.

"I held a meeting with more than 200 important GCC leaders. We discussed mobility in and beyond Bengaluru....We have given them opportunities for various research and innovation here. The entire world is looking at Bengaluru," Shivakumar told reporters.

Speaking at an event in the city, Shivakumar said the government was focused on improving Bengaluru's infrastructure while encouraging companies to expand operations across Karnataka.


"We are spending Rs 1.5 lakh crore on Bengaluru's development. As part of this, we are constructing the 123-km Bengaluru Business Corridor and spending Rs 26,000 crore in the first phase," Shivakumar said in a press statement.

The government has also prioritised mobility projects to address the city's growing traffic congestion.

"Every month, nearly 30,000 new vehicles are registered in Bengaluru. We have planned 350 km of metro connectivity and aim to extend it to 500 km by next year," he said.

He added that the government is moving ahead with a 40-km tunnel road project, which will be placed before the cabinet shortly, besides a 44-km double-decker flyover and a 133-km flyover network.

Referring to congestion around Hebbal, Shivakumar said the government has already initiated a tunnel road project to ease traffic.

Highlighting the government's broader industrial strategy, Shivakumar said Karnataka was working to build multiple growth centres outside Bengaluru.

"Our government is moving forward to build more Bengaluru’s beyond Bengaluru. We are committed to providing the same infrastructure and opportunities available in Bengaluru to tier-2 and tier-3 cities," he said.

He said lower operating costs in smaller cities could make them attractive destinations for Global Capability Centres (GCCs).

"We are planning to provide a higher floor area ratio (FAR) to support the construction of high-rise commercial buildings in these cities," he said.

The state, he added, is focusing on research, innovation and advanced manufacturing while promoting industries across Karnataka rather than concentrating investments only in Bengaluru.

Discussions focused on improving ease of doing business, addressing operational challenges, enabling faster government-industry coordination, strengthening startup-GCC linkages and expanding Karnataka's leadership in artificial intelligence, engineering, research and development, product innovation and enterprise transformation.

Companies participating in the meeting included top technology firms such as Google, Intel, IBM, Anthropic, among others.

Addressing the gathering, Shivakumar urged companies to partner with the state in its growth journey.

"We are ready to provide all the support you need to grow. If you become stronger, Karnataka also becomes stronger. You are all partners and ambassadors of Karnataka's progress," he said.