Bengaluru: The state govt has announced new industrial parks in the latest budget, but a significant number of existing KIADB (Karnataka Industrial Areas Development Board) estates lie underutilised, raising questions about whether expanding capacity makes sense before fixing existing infrastructure.As per data from KIADB, as of Jan 13, 2026, of approximately 2,050 developed plots across 13 industrial areas in and around Bengaluru, only 1,908 were allotted. The contrast between older and newer industrial zones is telling. Established areas like Kumbalagodu Phases 1 and 2 (set up in 1979 and 1982) and Doddaballapur (1983) have allotted all 347 plots, while a few others earmarked for aerospace, IT, and hardware sectors have seen 574 plots allotted. But plot allotment is only the first step. On all allotted plots, a mere 543 units are currently in production; the rest are either under construction, awaiting implementation, or simply idle.All 134 units across Kumbalagodu’s two phases are operational, while all 114 units in Doddaballapur’s general industrial area are running. The IT Sector Park, spanning 1,175 acres and set up in 2009, tells a different story. Despite 250 developed units, only 36 are currently in production. The newest area in Devanahalli — launched in 2022 — has 115 allotted units but just one operational. The IT and aerospace sectors carry the highest burden of “allotted but not implemented” units: 79 and 73, respectively.The aerospace parks, which register a high number of working industries, have received over 100 new land requests, including from international investors, officials said.However, KIADB chief executive officer M Mahesh remains upbeat. “Many industries are thriving. We’re seeing strong interest in software, manufacturing, aerospace, defence, automobiles, solar, and semiconductors. We are among the top FDI (Foreign Direct Investment) destinations,” he told TOI, adding that idle units would be addressed soon.In his budget speech, chief minister Siddaramaiah had said: “During the first half of 2025-26, FDI equity inflows to the state stood at $9.4 billion, accounting for 26.7% of the nation’s total inflows.”Concerned stakeholdersVoices on the ground are less optimistic. An aircraft manufacturer operating out of Bommasandra for 15 years described the conditions as being “on the verge of collapse” — pothole-ridden roads, a decade of neglect, and ineffective local associations that have forced several large firms, some employing 2,000 to 3,000 workers, to relocate to Tamil Nadu or Gujarat. The manufacturer himself has acquired land in Ahmedabad and is considering a move.Industry bodies echo the concern. Uma Reddy, president of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), acknowledged the state’s strong industrial legacy — rooted in institutions like HAL and BEL — but stressed that growth now demands better connectivity, upgraded infrastructure, and development of plots beyond Bengaluru.The pattern is difficult to ignore: new parks keep getting announced while existing ones see units sitting idle and businesses quietly leaving. Until infrastructure gaps are addressed, fresh announcements risk being real estate exercises dressed up as industrial policy.BOXState of plots across 13 industries■ Plots developed: 2,036■ Plots allotted: 1,908■ Vacant plots: 128■ Units across plots: 1,632■ Possession certificate issued: 1,320■ Building plan approved: 794■ Under construction: 543■ Units allotted but not implemented: 270Industrial areas: Kumbalagodu Phase 1, Kumbalagodu Phase 2, Doddaballapur General, Apparel Park Phase 1, Apparel Park Phase 2, Aerospace Sector, Aerospace Sector (SEZ), IT Sector, Hardware Sector, Obadenahalli (Doddaballapur 3rd Phase Industrial Area), Adhinarayana Hosahalli (Doddaballapur 4th Phase), Hi-tech Defence & Aerospace Park, Devanahalli General Industrial Area-1— Source: KIADB
