Karnataka has moved a step closer to building what it calls India’s first artificial intelligence-powered city at Bidadi, located 30 kilometres from Bengaluru. The proposed Greater Bengaluru Integrated Township (GBIT) will cover close to 9,000 acres and is being projected as the state’s largest planned urban development since Electronics City and Whitefield.
Deputy Chief Minister D K Shivakumar announced that the township will be developed on a work-live-play model, where industries, residential clusters, and open spaces are integrated into a single ecosystem. State planners describe it as Bengaluru’s second central business district (CBD), designed with a focus on AI-based industries, IT services, and high-value employment opportunities.
Township Design and Land Allocation
The GBIT master plan spans 8,493 acres across nine villages in Ramanagara district. Land distribution has been structured to balance industrial, residential, commercial, and ecological functions. Of the total land identified, 6,731 acres will be acquired from private owners, 750 acres are government-owned, and 1,012 acres are waterbodies.
According to officials, 2,000 acres are earmarked for AI-driven industries, IT parks, and services, while 1,100 acres will be preserved for public parks, green belts, and recreational zones. Residential clusters will follow a “walk-to-work” concept, reducing commuting time and dependence on vehicular transport. Transport corridors within the township will include arterial roads up to 90 metres wide. A central feature of the plan is the rejuvenation of Byramangala lake and its feeder wetlands. The government has emphasised that the township will integrate lake restoration, groundwater recharge, and stormwater management to ensure ecological sustainability.
Connectivity and Transport Corridors
The project’s location near the Bengaluru–Mysuru corridor is considered a strategic advantage, with access to multiple regional and national transport routes. A 300-metre-wide business corridor is planned to link the township with key roads including the Satellite Town Ring Road (STRR), national highways NH-209 and NH-275, NICE Road, and the Bengaluru–Mysuru Expressway.
The transport grid has been designed not only to connect Bidadi with Bengaluru but also to allow the township to function as an independent hub for employment and residential activities. Within the township, arterial and ring roads will be supported by pedestrian-friendly clusters, reflecting an effort to minimise reliance on private vehicles and encourage sustainable mobility.
Water, Sewage, and Utilities
Water and waste management have been integrated into the initial planning framework. The Bangalore Water Supply and Sewerage Board (BWSSB) has been assigned the task of setting up a 100 MLD sewage treatment plant, which will recycle treated water for non-potable purposes. This aligns with the township’s emphasis on green infrastructure. Power supply is expected to be drawn from a combination of the existing grid and renewable energy sources, although the precise mix has not been disclosed. Solid waste management facilities will be decentralised, with processing units distributed across the township to reduce the pressure on a centralised system.
Financial Structure and Investment
The estimated cost of the GBIT project exceeds ₹20,000 crore. Funding will be mobilised through a mix of state allocations and institutional borrowing. The Bangalore Metropolitan Region Development Authority (BMRDA) will contribute ₹2,950 crore, while ₹17,500 crore is expected to come from banks and financial institutions with state government guarantees. An additional ₹10,000 crore may be raised specifically for land acquisition payouts.
Officials have indicated that later phases of township development, particularly those involving residential and commercial zones, could adopt public-private partnership models. This financial structure is intended to spread the risk between government and institutional investors while ensuring adequate capital flow for different phases of development.
Compensation and Rehabilitation Model
Land acquisition has been identified as one of the most sensitive aspects of the project. The township covers land in nine villages, where about 70 per cent of landowners have already consented to the compensation framework, while 30 per cent remain undecided. Some parcels owned by relatives of former chief minister H D Kumaraswamy also fall within the project area. The compensation model includes annual annuities ranging from ₹30,000 to ₹50,000 per acre for landowners, as well as ₹25,000 in yearly assistance for landless families until permanent rehabilitation. Housing sites will be allocated to displaced households, while employment opportunities will be created in township-linked industries. Education support is also being extended, with certification facilitation to ensure continuity for affected students. This package is structured to balance the state’s need for land with safeguards for displaced communities.
Employment and Economic Role
The township is expected to create lakhs of direct and indirect jobs in the coming decade. AI-driven industries, IT companies, and service providers will be the primary employers, supported by ancillary sectors. A “locals-first” policy is being promoted, with skill development centres planned in partnership with industrial stakeholders. These centres will focus on equipping Karnataka’s youth with skills in AI, data processing, IT-enabled services, and related industries. By positioning the township as a base for global investors, multinational corporations, and startups, the government aims to attract both foreign direct investment and domestic capital into Karnataka’s technology sector.
Timeline and Administrative Steps
The government has laid out an ambitious three-year timeline for the completion of the project’s first phase. Key milestones include the cabinet approval in February 2025, preliminary land acquisition notification in March 2025, and joint measurement surveys beginning in September 2025 with a 90-day deadline. A final notification is scheduled for December 2025, followed by compensation payouts between January and February 2026. Developed sites are to be handed over to allottees by 2027, with the overall township targeted for completion in 2028. While the timeline is considered challenging given the scale of land and infrastructure requirements, officials claim that structured project management systems have been placed under the Greater Bengaluru Development Authority to ensure adherence.
Historical Context and Delays
The Bidadi township concept has a long history. It was first proposed in 2006 under then-chief minister H D Kumaraswamy, linked to a public-private partnership with developer DLF. However, land disputes, unclear compensation terms, and DLF’s withdrawal caused the plan to collapse. The project remained dormant for more than a decade. In 2023, the Bidadi Smart City Planning Authority was restructured into the Greater Bengaluru Development Authority, reviving the proposal with new administrative support. Unlike earlier versions, the current plan is explicitly oriented towards AI and digital economy growth, while also seeking to ease Bengaluru’s urban infrastructure stress.
The state government is framing the Bidadi AI city as a model for future technology-driven townships in India. By combining industrial clusters, residential zones, and ecological restoration, it seeks to demonstrate a balance between growth and sustainability. Strategically, the township is expected to reduce pressure on Bengaluru by absorbing population growth and industrial expansion that might otherwise intensify congestion in the capital. At the same time, the project faces significant challenges.
Land acquisition disputes, financing requirements, and the need for inter-agency coordination are all potential hurdles. Any delays in compensation or infrastructure delivery could affect investor sentiment. Conversely, successful execution would establish Bidadi as the first Indian township designed around AI and smart city principles, setting a precedent for other states.
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