Bengaluru: Peenya declared Special Investment Region, set for infrastructure overhaul

Bengaluru’s Peenya Industrial Area, once considered Southeast Asia’s largest industrial hub, has been officially designated a Special Investment Region (SIR) by the Karnataka government. This move, notified on June 9, covers Peenya’s four industrial phases spread across 1,461.5 acres and will bring them under the Karnataka Special Investment Region Act, 2022.

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Under this new status, the Karnataka Industrial Areas Development Board (KIADB) will serve as the Industrial Township Authority, responsible for administering civic services and collecting property taxes from industrial units. Of the total taxes collected, 70% will be reinvested locally to improve roads, drainage, sanitation, waste management, and other key services, while the remaining 30% will go to the Bruhat Bengaluru Mahanagara Palike (BBMP).

The township model follows the precedent set by ELCITA in Electronics City and is aimed at streamlining governance through a single-window system. A 13-member Regional Development Authority will be established to oversee implementation.

Home to around 3,500 industries and employing over 8 lakh people, Peenya has faced decades of neglect in civic infrastructure despite its significant contribution to India’s manufacturing, especially in the machine tool, aerospace, and garment sectors. Long-standing demands for township status—dating back to the 1990s—are now being met, with stakeholders optimistic about improved infrastructure and enhanced investment potential.

Key industrial demands include immediate upgrades to roads, drainage, lighting, a Common Effluent Treatment Plant, and full township autonomy akin to Electronics City.