IT Park tender draws no bids, deadline extended

Mangaluru: The proposed Rs 135 crore IT Park in Mangaluru has suffered another setback after failing to attract bidders, forcing the govt to extend the tender deadline from May 29 to June 19. Sources in Karnataka State Electronics Development Corporation Limited (Keonics) said the dates may be extended again as there are still no probable bidders lined up for the project.Keonics and Credai Mangaluru sources said that even during the second round, three stakeholders had shown initial interest but did not proceed further, citing multiple constraints in the tender conditions. The govt had reopened bidding for a second time after receiving no response in the first tender process.Poor connectivity to the site has emerged as the central deterrent. The proposed IT Park is planned on 3.2 acres of land near Blueberry Hills Road, Derebail. While the land parcel is located less than a kilometre from NH-66, stakeholders said the approach road from Bejai-Kavoor road is narrow and difficult for sustained commercial traffic, reducing the site’s viability for a large office-tech development.Keonics has acknowledged the access issue in official communication. In a letter dated May 11, 2026, to the urban development department, Keonics sought a grant of Rs 22 crore for widening and gradient improvement of the access road leading to the land parcel. The letter referred to the call-2 request for proposal issued on April 10, 2026, for the 'Development of Commercial Office Tech Park at Mangalore,' and recorded that bidders raised repeated concerns during the pre-bid meeting held on April 29 about the narrow approach road and the operational challenges it would create.Potential bidders said the tender structure itself is another major barrier, arguing that the financial and participation conditions do not match Mangaluru’s tier-2 market realities. Stakeholders cited a high deposit requirement of Rs 13 crore and rental expectations that they believe would be difficult to sustain while attracting IT tenants. They also flagged restrictions on consortium formation, saying the tender permits only three participants, with one entity required to hold at least 60% share, limiting broader pooling of investment and risk-sharing options.A stakeholder said several interested individuals had explored pooling smaller individual contributions and leveraging loans, but the current consortium conditions made such models unworkable. The stakeholder added that the project’s focus should be on creating an ecosystem that draws companies to the campus rather than prioritising upfront revenue.Another stakeholder said the stalled tender should not be portrayed as a failure of the region’s IT ecosystem, maintaining that the broader IT industry sentiment in the coastal district remains positive.