Karnataka floats tender for logistics park near Bengaluru airport under PPP model

In a bid to boost logistics infrastructure and enhance industrial connectivity, the Karnataka government has initiated the process to develop a state-of-the-art logistics park near Kempegowda International Airport. The Karnataka State Industrial & Infrastructure Development Corporation Limited (KSIIDC) has floated a tender for the proposed facility at Balepura village, located in close proximity to the airport.

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The project, delayed in previous phases, is now being revived under the public-private partnership (PPP) model, specifically through the Design, Finance, Build, Operate and Transfer (DFBOT) approach. According to the tender documents, the selected private developer will be responsible for designing, funding, constructing, and operating the facility before eventually transferring it back to the government.

Spread over 10 acres, the integrated logistics hub is expected to include essential infrastructure such as a logistics park, standalone warehouses, cold storage units, and possibly light manufacturing facilities. The aim is to streamline cargo movement, support regional supply chains, and reduce urban freight congestion.

The developer will be required to commence commercial operations within 36 months of receiving the Letter of Award (LoA), ensuring timely delivery and operational readiness. The move aligns with Karnataka’s broader vision to establish Bengaluru as a major logistics hub, leveraging its strategic location and growing demand for warehousing and cold chain solutions.

KSIIDC’s initiative is expected to attract significant private sector interest, given the project’s location advantage and infrastructure potential.