In a major development aimed at accelerating industrial growth and streamlining local governance, the Government of Karnataka has officially notified the Peenya Industrial Area in Bengaluru as a Special Investment Region (SIR). This move marks Peenya as the 18th such designated zone in the state under the Karnataka Industrial Areas Development Board (KIADB) authority.

This decision, announced via a government notification dated June 9, brings with it significant implications for infrastructure, governance, investment, and employment within the region.

Peenya Industrial Area: One of India’s Largest Industrial Hubs

Peenya Industrial Area (PIA) is one of the oldest and largest industrial zones in Southeast Asia. Established in the late 1970s, Peenya has been pivotal to Bengaluru’s industrial and economic landscape.

Spanning a total of 1,461.46 acres, the area covers:

• Peenya Phase I

• Peenya Phase II

• Peenya Phase III

• Peenya Phase IV

Situated along the Bengaluru–Tumakuru highway, this industrial belt is home to thousands of small, medium, and large-scale enterprises. Collectively, these businesses provide employment to over 5 lakh people, including 2.5 lakh women, contributing significantly to Karnataka’s manufacturing and economic output.

The surrounding area is a mix of residential, commercial, and industrial development, making Peenya a vital urban-industrial node in northwestern Bengaluru.

What the SIR Notification Means for Peenya

The government’s notification has declared that “Peenya Special Investment Region shall be deemed to be an industrial township,” under the Special Investment Regions Act. This means Peenya will now enjoy a new governance structure, aimed at efficient administration, fast-tracked approvals, and infrastructure development.

KIADB has been appointed as the Industrial Township Authority — also known as the Regional Development Authority (RDA) — for Peenya SIR.

Under this authority, KIADB will now manage:

• Property tax assessment, imposition, and collection

• Approval of land use and zoning plans

• Infrastructure planning and execution

• Industrial development activities

• Investment facilitation and coordination

This brings Peenya’s administration in line with 17 other SIRs already declared in Karnataka, making it easier for companies to invest, operate, and expand within a more predictable and streamlined framework.

Background: Karnataka’s Special Investment Region Act

The Karnataka Special Investment Region Bill was passed in 2022 and the accompanying rules were notified in 2024. The legislation aims to create an institutional framework for large, mega, and super-mega investment zones by empowering the government to:

• Notify existing industrial areas as SIRs

• Define boundaries and jurisdiction

• Delegate governance to KIADB or other appointed RDAs

• Accelerate infrastructure planning and delivery

The SIR Act was designed to position Karnataka as a global manufacturing and investment hub, simplifying investment procedures and offering clear administrative authority to industrial townships.

What Makes the Peenya Notification Significant

This move is significant for multiple reasons:

1. Recognition of Peenya’s Importance: As one of India’s key industrial ecosystems, Peenya’s inclusion as a SIR reflects its economic and strategic value.

2. Streamlined Administration: By appointing KIADB as the sole governing authority, businesses in Peenya will now face reduced bureaucratic delays, faster clearances, and greater ease of doing business.

3. Better Infrastructure Prospects: With the SIR status, Peenya is now eligible for targeted infrastructure investments, including upgraded roads, power systems, water supply, waste management, and public amenities.

4. Focus on Integrated Development: SIR designation encourages balanced industrial, residential, and commercial development, aligning with urban sustainability goals.

5. Job Creation and Inclusivity: Given Peenya’s role in employing over 2.5 lakh women, the SIR upgrade could result in more inclusive workforce policies and skill development initiatives.

Role of KIADB as Regional Development Authority

The Karnataka Industrial Areas Development Board (KIADB) is now the Regional Development Authority (RDA) for Peenya SIR. This empowers KIADB to:

• Approve all development and land-use plans

• Facilitate infrastructure creation (roads, drainage, utilities)

• Collect and manage taxes and fees

• Act as a single-window agency for investor approvals

• Drive integrated township development in line with state policy

This centralized governance model eliminates overlap and inefficiencies often seen in dual administrative setups involving local municipalities and industrial boards.

Peenya’s Industrial Composition and Economic Role

Peenya hosts a diverse mix of industries, including:

• Engineering and fabrication units

• Electrical and electronics manufacturing

• Textiles and garments

• Automobile parts and accessories

• Plastic and polymer-based industries

• Food processing and packaging

The ecosystem here not only supports local demand but also contributes to Karnataka’s exports, providing raw materials, components, and finished goods to global supply chains.

Its proximity to the Bengaluru International Airport, major highways, and urban markets further enhances its value as an investment destination.

Strategic Benefits for Investors and Industry

With SIR status, Peenya’s industries and incoming investors can benefit from:

• Simplified land acquisition and leasing

• Fast-tracked approvals and clearances

• Dedicated dispute resolution mechanism

• Industrial cluster development support

• Access to state and central industrial subsidies and incentives

Additionally, KIADB’s centralized authority can reduce the typical delays associated with overlapping jurisdictions involving BBMP, local panchayats, and other agencies.

Next Steps for Peenya SIR Implementation

With the notification in place, the state government and KIADB are expected to:

• Finalize a comprehensive development master plan

• Begin infrastructure audits and upgrades

• Set up single-window facilitation centres

• Engage with existing industry associations and chambers

• Ensure a smooth transition from current local governance to RDA-led systems

This transition will be closely watched by industry stakeholders, investors, and urban planners as it will serve as a model for future SIRs.

Conclusion

The Karnataka government’s move to notify Peenya Industrial Area as a Special Investment Region marks a significant step in transforming the state’s industrial governance landscape. With KIADB assuming full administrative authority, the industrial township is poised for faster growth, improved infrastructure, and greater investor interest.

As Karnataka sharpens its focus on attracting global manufacturing and technology investments, the Peenya SIR could become a flagship model for industrial township governance, enhancing not just economic output but also employment and urban integration.

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