Mangaluru: For the second time in five months, state govt has reopened bidding for its proposed IT Park in Mangaluru after the first round failed to attract even a single bidder, raising questions over a Rs 135-crore project planned on public land.The IT Park is proposed on 3.2 acres near Blueberry Hills Road in Derebail and is part of the state’s ‘Beyond Bengaluru’ initiative. The tender has been floated by Karnataka State Electronics Development Corporation (KEONICS).The first round of bidding opened on Dec 15 and closed a month later without any takers. A second round is now under way and will close on May 22. According to sources, only one bidder has shown interest so far.Poor roads, tough conditions deter biddersIndustry stakeholders said the lack of response has less to do with demand and more to do with conditions on the ground. They pointed to a combination of stringent technical requirements, poor site readiness and commercial terms that do not reflect the local market.Connectivity to the site remains one of the biggest deterrents. Despite the land being available for around two decades, stakeholders said even basic road access has not been put in place.Sources said several conditions in the tender made the project difficult to bid for. While local industry representatives managed to persuade the govt to relax some clauses, many restrictive requirements continue.‘Treat Mangaluru as tier-2 city’A realtor involved in IT workspace development said weak basic infrastructure has hurt investor confidence. He said that while Mangaluru was home to one of the earliest Software Technology Parks of India (STPI) facilities, the city’s IT ecosystem has failed to keep pace with Bengaluru. What Mangaluru needs, he added, is dependable road connectivity rather than large-scale expansion.Vinod Pinto, president of CREDAI Mangaluru, said the body had flagged concerns over high rentals, noting that bidders expected more competitive lease terms since the land is government-owned. He said Mangaluru should be treated as a tier-2 city in pricing and policy, instead of being benchmarked against Bengaluru or larger metros.Under the tender, the selected bidder will get the land on a 30-year lease under the Design-Build-Finance-Operate-Transfer model, with an option to extend it by another 30 years. Stakeholders said unless the govt fixes basic infrastructure gaps, simplifies technical requirements and aligns rentals with local market conditions, the project may continue to struggle to find takers.
