Idle Units Cast Shadow on New Industrial Park Push in Karnataka

Karnataka’s push to expand its industrial footprint through new parks has sparked a debate, as a significant portion of existing industrial areas remains underutilised. Data from the Karnataka Industrial Areas Development Board shows that while around 2,050 plots have been developed across 13 industrial estates near Bengaluru, about 1,908 have been allotted. However, allocation has not translated into actual operations on the ground.

Out of 1,632 units across these plots, only 543 are currently operational. The rest are at various stages such as under construction, awaiting approvals, or lying idle. This gap between allotment and execution has raised serious questions about infrastructure readiness and policy effectiveness.

Older industrial hubs like Kumbalagodu and Doddaballapur present a contrasting picture. These zones have achieved full occupancy and operational stability over time. On the other hand, newer zones, especially those focused on sectors like IT and aerospace, are yet to see meaningful traction. For instance, the IT Sector Park has a large number of developed units, but only a small portion is currently functional. Similarly, Devanahalli’s industrial area has witnessed minimal operational activity despite multiple allotments.

Industry stakeholders point to infrastructure challenges as a major bottleneck. Poor road conditions, lack of maintenance, and delays in approvals are cited as key reasons for industries not commencing operations. Some companies have even begun exploring relocation to states like Tamil Nadu and Gujarat, where infrastructure and execution are perceived to be more reliable.

While state officials remain optimistic, highlighting strong investor interest and continued foreign direct investment inflows, industry bodies stress the need to address ground-level issues. Improving connectivity, ensuring timely clearances, and strengthening support infrastructure will be critical to unlocking the potential of existing parks.

As Karnataka continues to position itself as a leading industrial destination, the focus will need to shift from merely announcing new projects to ensuring the success of existing ones.