Karnataka Allots 140 Acres to Applied Materials at Bengaluru Business Park for ₹780 Crore

The Karnataka government has approved a significant land allocation to strengthen its semiconductor and advanced technology ecosystem, with a global player set to establish a presence near Bengaluru’s airport corridor. 

Land Allocation and Deal Structure 

As per news reports, the state cabinet cleared the allotment of 140 acres at the Bengaluru Signature Business Park (BSBP), located near Kempegowda International Airport, to Applied Materials Inc.. The transaction has been valued at ₹780 crore, with land pricing fixed at ₹1,288 per square foot. 

HK Patil, Law and Parliamentary Affairs Minister of Karnataka, said the cabinet approved the allocation “after examining valuation norms aligned with guideline value,” adding that the allotment will be executed on a lease-cum-sale basis.  

He noted that the decision remains subject to statutory approvals, regulatory clearances and final pricing mechanisms. 

Policy Review and Remaining Land Strategy 

Alongside the approval, the government has decided to reassess its land disposal approach at BSBP. This includes reviewing earlier models such as lease-only arrangements and public-private partnership structures. 

Out of the total land parcel, 267 acres remain available and will be allocated through multiple routes, including competitive bidding and the appointment of transaction advisers, as part of a revised monetisation strategy. 

Strategic Context and Industrial Push 

The development is part of Karnataka’s broader effort to position itself as a hub for semiconductor and high-technology investments.  

The state is focusing on areas such as chip design, research and development and global capability centres. 

MB Patil, Industries Minister of Karnataka, recently indicated that a major semiconductor-related project has been cleared, although specific details, including investment size, have not yet been disclosed. 

Project Background and Outlook 

Bengaluru Signature Business Park spans 407 acres and was first proposed in 2008. It is being developed under a public-private partnership model and is strategically located near the airport to attract global technology investments. 

The allocation to Applied Materials reflects continued momentum in Karnataka’s semiconductor ambitions, with land policy adjustments and infrastructure planning aimed at supporting large-scale, high-value projects. 

Read More: Karnataka Plans to Develop 1,000 MW Data Centre Capacity Across Bengaluru, Mysuru, and Mangaluru! 

Conclusion 

The decision highlights Karnataka’s focus on building a competitive semiconductor ecosystem, combining strategic land allocation with policy recalibration to attract global technology companies.  

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