Representative Image
Shankaranarayana Constructions gets 4.5 acre KIADB land to establish ₹123 crore Defence Park in Devanahalli
The Karnataka government has granted in-principle approval to Shankaranarayana Constructions Private Limited to set up a ₹123 crore IT Park catering to the IT/ITeS sector at the Hi-Tech Defence & Aerospace Park in Devanahalli, Bengaluru Rural District. The ambitious project promises to create approximately 2,500 jobs.
The allotment of the 4.5 acres of land to the private entity remains conditional, pending a decision from the Karnataka High Court. The State government has not disclosed the cost the private entity has to pay for the purchase of the Karnataka Industrial Areas Development Board (KIADB) land, also raising serious questions about the transparency of the deal.
The identified plot — Plot No.11 in the Hardware Sector of the park — had earlier been allotted to IDBI Bank Limited in 2013. Although IDBI had remitted the full tentative cost of the land, the project failed to take off due to non-execution of a lease-cum-sale agreement. This led the KIADB to cancel the allotment in July 2023.
IDBI Bank subsequently contested this cancellation in the High Court, where the matter is still under judicial consideration. As a result, while the government has cleared Shankaranarayana Constructions’ investment proposal, it has made it explicitly clear that the actual handover of land will depend on the final court verdict regarding Plot No.11.
In addition to land, the government has approved infrastructure support, including 25 KLPD of water from KIADB and a 3,500 kilovolt-amperes power supply from Bangalore Electricity Supply Company Limited, along with incentives and concessions as per State policies. The company has also been directed to fulfil several conditions related to environmental clearance, local employment, vendor development, and social infrastructure contributions.The approval is valid for two years.