Karnataka issues a tender for a logistics park near Bengaluru airport

Using the public-private partnership (PPP) model, the Karnataka government has launched a tender for the construction of a logistics park in Balepura, close to Kempegowda International Airport in Bengaluru. The project has been beset by delays. The logistics facility and associated infrastructure are being offered for sale by Karnataka State Industrial & Infrastructure Development Corporation Limited (KSIIDC) using the design, finance, construct, operate, and transfer (DFBOT) approach.

The chosen developer must start operations within 36 months of obtaining the letter of award (LoA) and will construct an integrated logistics facility on the 10-acre property, which may include a logistics park, standalone warehouses, cold storage, or manufacturing units. According to the approved FAR (Floor Area Ratio), a built-up area of at least 1.8 lakh sq ft is the minimum development requirement. The park has been delayed for a number of reasons, despite being included in the Karnataka State Logistics Plan-2022.

The Bengaluru Satellite Ring Road (NH-648) leads to the location, which is in the northern quadrant of the Bengaluru Rural district and is roughly 18.6 km from the airport. With Foxconn’s 300-acre iPhone assembly factory, Project Elephant, in the ITIR region that includes the taluks of Doddaballapur and Devanahalli, anticipated to open in a few months, Devanahalli is becoming a burgeoning industrial center.

In FY25, Bengaluru airport handled a record 502,480 MT of cargo, 14% higher than the year before. The boost was driven by a 4 percent increase in domestic freight (181,062 MT) and a 21 percent increase in international cargo (321,418 MT).

The 10-acre property is being offered by KSIIDC on a 30-year lease that can be extended by an additional 30-year period. A one-time, non-refundable premium of at least Rs 85 lakh per acre (ex-GST)—a minimum of Rs 10 crore for the site—must be quoted by bidders. For the first 30 years, the chosen bidder will pay an annual leasing rent of Rs 1 lakh per acre; beyond that, it will be Rs 4.2 lakh, both of which exclude GST. Bids that fall below the minimum amount will be turned down. A consultant for the “vision document” will be hired by KSIIDC. Additionally, KSIIDC intends to hire a consulting firm to draft a vision document that would pinpoint new business prospects and revenue-boosting strategies.