Karnataka to Build ‘New Bengalurus’ in Tier-2 and Tier-3 Cities, Announces CM DK Shivakumar

Bangalore Mail Political Bureau

July 8, 2026

BENGALURU: In a major push to decentralize economic growth and reduce urban congestion, Karnataka Chief Minister DK Shivakumar announced on Wednesday that the state government is actively working to develop multiple “New Bengalurus” across Tier-2 and Tier-3 cities.

Speaking at the ‘Target India’ event held at Manyata Tech Park, the Chief Minister emphasized the government’s commitment to replicating Bengaluru’s world-class amenities and tech ecosystem in other promising regions of the state.

Incentives for Cities Under ‘Beyond Bengaluru Initiative’

Highlighting the economic viability of smaller cities, Shivakumar pointed out the massive cost advantage for businesses. “While commercial office rent in Bengaluru ranges between $1 to $1.5 per square foot, it is available for just half a dollar in Tier-2 and Tier-3 cities,” he stated.

To further incentivize development in these regions, the Chief Minister revealed that the government plans to offer double Floor Area Ratio (FAR) benefits, clearing the path for the construction of high-rise commercial and residential infrastructure beyond the state capital.

“Karnataka is a powerhouse of quality education and talent. We are completely open to your ideas and feedback. If your businesses grow strong, our state grows strong. You are the brand ambassadors and partners in Karnataka’s progress,” Shivakumar told the corporate leaders present at the event, underscoring the “Team Karnataka” spirit.

₹1.5 Lakh Crore Infrastructure Blueprint for Bengaluru

While pushing for the Beyond Bengaluru initiative, the Chief Minister assured that the development of the capital remains a top priority. Acknowledging the traffic hurdles, especially near areas like Hebbal, he announced a massive ₹1.5 lakh crore infrastructure investment blueprint aimed at smoothing vehicular movement.

Key projects highlighted by the Chief Minister include:

• Metro Expansion: Planning to scale the existing 350 km metro network to 500 km by next year.

• Tunnel Roads: Work has already commenced on a minor tunnel road near Hebbal. A proposal for a massive 40 km underground tunnel road network across Bengaluru will be brought to the next Cabinet meeting for rapid approval.

• Elevated Corridors & Flyovers: Plans are underway for a 44 km double-decker corridor and 133 km of elevated flyovers.

• Bengaluru Business Corridor: Construction of the 123 km business corridor is moving forward, with ₹26,000 crore allocated for the first phase.

Global Appeal and Talent Pool

Shivakumar reiterated that Karnataka remains the undisputed hub for global talent, producing over 1.50 lakh engineers annually from 257 engineering colleges.

“Bengaluru is India’s window to the world. Currently, the city hosts 40 of India’s 138 international schools and is home to over 2 lakh foreign passport holders working in various sectors,” he noted.

The Chief Minister concluded by stating that while states like Maharashtra are becoming increasingly expensive for businesses, Karnataka stands out as a highly attractive, culturally rich alternative with a welcoming climate. He added that the upcoming Bengaluru Tech Summit would serve as a major platform to further drive investments into the state’s expanding Tier-2 and Tier-3 urban centers.