north bangalore

STUDY OF DEVELOPMENT POTENTIAL AROUND BANGALORE INTERNATIONAL AIRPORT JUNE 2010

Infrastructure Development Corporation (Karnataka) LimitedInfra House, 39, 5th Cross, 8th Main, RMV Extension, Sadashivnagar, Bangalore – 560080 Ph: 91 – 80 – 43448000; Fax: 91 – 80 – 23613016

Submitted to

Infrastructure Development Department

2 Study on Development Potential around Bangalore International Airport

CONTENTS

1. BANGALORE – THE BURGEONING METROPOLIS 5

1.1. BANGALORE ‐ INDUSTRY PROFILE 5

2. BANGALORE INTERNATIONAL AIRPORT 8

2.1. BANGALORE INTERNATIONAL AIPRORT‐ FEATURES 8 2.1.1. DESIGN AND FACILITIES 8 2.1.2. CARGO VILLAGE 9 2.1.3. PARTNERS FOR AIRPORT SERVICES 10 2.1.4. ROAD AND RAIL INFRASTRUCTURE 10 2.1.5. BANGALORE INTERNATIONAL AIRPORT AREA PLANNING AUTHORITY (BIAAPA) 14

3. PROPOSED DEVELOPMENT 17

3.1. MOUS SIGNED AT GLOBAL INVESTORS MEET 18

4. INFORMATION TECHNOLOGY, INFORMATION TECHNOLOGY ENABLED SERVICES &

BIOTECHNOLOGY 21

4.1. INFORMATION TECHNOLOGY INVESTMENT REGION (ITIR) 21 4.1.1. POLICY FOR INFORMATION TECHNOLOGY INVESTMENT REGIONS (ITIR) 22 4.2. OTHER PROPOSED DEVELOPMENTS 23

5. DEVANAHALLI BUSINESS PARK 26

6. AEROTROPOLIS 30

6.1. CONNECTIVITY & TRANSPORT INFRASTRUCTURE 30 6.2. AEROTROPOLIS ‐ ZONES 30 6.2.1. DOWNTOWN 31 6.2.2. BUSINESS UNIT 31 6.2.3. TECHNOLOGY CENTRE 31

7. GLOBAL FINANCIAL DISTRICT 33


8. AEROSPACE PARK 35

9. MEDICAL, HOSPITALITY & ENTERTAINMENT 38

9.1. MEDICAL TOURISM HUB 38 9.1.1. NARAYANA HRUDAYALAYA SUPER SPECIALITY HOSPITAL 38 9.2. BANGALORE TURF CLUB 39 9.3. UPCOMING HOTEL PROJECTS AROUND DEVANAHALLI 40

10. RESIDENTIAL COMPLEXES 42


BANGALORE – THE GROWING METROPOLIS


1. BANGALORE – THE BURGEONING METROPOLIS

Karnataka, located in the southern part of India, is the ninth

most populated State in India and is divided into 29 Districts

with a total area of 191,791 sq km that accounts for 5.83 per

cent of India's geographical area. The State is bordered by

the Arabian Sea to the West, Goa to the Northwest,

Maharashtra to the North, Andhra Pradesh to the East,

Tamil Nadu to the Southeast, and Kerala to the Southwest.

Karnataka State is extending approximately 700 km along

the North ‐ South direction and 400 Km approximately in the

East ‐ West direction. Bangalore is the administrative and

financial capital of the State.

With an economic growth of 10.3%, Bangalore is one of the fastest growing

metropolises in Asia. Bangalore population has been growing at a rate of 3.25% per year

in the last decade. With sobriquets such as Silicon Valley, Garden City and Pensioner's

Paradise, the city has been able to retain its traditional charm, despite the onslaught of

modernism.

Bangalore’s unique advantage also emanates from the mature and thriving ecosystem

that supports the IT and ITES sector. Apart from strong education system that is a

continuous source of quality manpower and industry friendly policies, the existence of

complementary and supplementary industries also makes Bangalore the fourth largest

IT cluster in the world.

1.1. BANGALORE ‐ INDUSTRY PROFILE

Bangalore is the Information Technology (IT) & Bio‐technology (BT) capital of India. Over

2,000 IT & IT Enabled Services (ITES) companies, including more than 100 Fortune‐500

companies have established their operations in Bangalore generating IT & ITES exports

of around INR 700 billion (US$ 16.3 billion) and directly employing over 650,000

professionals.


Some of the prominent Fortune‐500 companies having operations in Bangalore are

General Electric, Toyota, ING, Microsoft, Intel, Citigroup, IBM, HP, Dell, Societe

Generale, TESCO, CISCO, AXA, Sun Microsystems, HSBC, Accenture, Motorola,

Flextronics, 3M, Honeywell, Siemens, Bosch, Tyco, Astra Zeneca, ABB, Alcan, JP Morgan

Chase and Goldman Sachs. Prominent Indian IT&ITES companies like Infosys and Wipro

have their headquarters in Bangalore, while Satyam & TCS have major operations in the

city. Annual disposable income of the professionals employed in IT&ITES sector at

Bangalore is estimated to be around INR 120 billion (US$ 2.79 billion) per annum.

Bangalore is home to around 200 Bio‐tech companies (more than 50% of Bio‐tech

companies in India), which are growing at 40% p.a. and accounting for more than 60% of

total BT exports from India.

Over the past few years, Bangalore is emerging as one of the major Medical Tourism

destinations in the world due to availability of tertiary and quaternary hospitals of

international standards with significant cost advantage. Over 200,000 medical tourists

visited India for medical treatment to the tune of US$ 600 million in 2007, which is

expected to increase to US$ 2 billion by 2012.

Apart from IT & ITES sector, Bangalore and its surroundings house manufacturing

facilities of Toyota, Volvo, Tyco, Bosch and other large & medium scale industries in

various industrial areas in and around Bangalore.

Presently, IT & ITES companies are concentrated in and around Central Business District,

East Bangalore (Whitefield, International Tech Park Bangalore (ITB) developed by

Ascendas), South‐East Bangalore (Electronic City spread over 440 acres, Sarjapur‐Outer

Ring Road). However, with the International Airport becoming operational near

Devanahalli (40 kms North of Bangalore), major real estate projects and developments

are witnessed between Bangalore city and new International Airport.


BANGALORE INTERNATIONAL AIRPORT


2. BANGALORE INTERNATIONAL AIRPORT

Bangalore International Airport (BIA) is an international airport serving the city of

Bangalore (Bangalore), Karnataka, India. The airport is located 4 km south of

Devanahalli, 40 km from the central business district of Bangalore and 30 km from the

Bangalore City Railway Station. The BIA covers about 4,000 acres of area. It has replaced

the old HAL Bangalore International Airport. Construction of the airport began in July

2005, after a decade long postponement. It was expected to be inaugurated on 30

March 2008 but due to delays in air traffic control (ATC) services, it started its

operations on the night of 23 May 2008, just before midnight. The airport handled

about 9.3 million passengers and had air traffic movements (ATM) of about 280 per day

in the year 2009. The airport is expected to handle 17 million passengers in the year

2015.The airport is host to 9 domestic airlines and 19 international airlines connecting

the city to about 50 destinations across India and the world.

2.1. BANGALORE INTERNATIONAL AIPRORT‐ FEATURES

2.1.1. DESIGN AND FACILITIES

The passenger terminal is a single, fully four‐level building capable of accommodating

international and domestic operations. The basement houses the retail storage, rest

areas and services. The arrival and departure areas are separated vertically with a


modern, simple, straight‐ahead flow system. The terminal is designed for ease of

operation and minimum maintenance.

The total floor area is approximately 171,000m² (1,840,000ft²). The terminal building is

designed to accommodate 3,000 passengers at peak times. The design reflects the best

industry practice and caters for 24‐hour operations, under all weather conditions. All

facilities meet IATA standards.

The airport can handle 14 million passengers a year with 27 aircraft movements an

hour. Common‐use terminal equipment (CUTE) enabled check‐in counters: 117 and 66

self check‐in counters.

The airport has 40gates and 18 air bridges, including nine double arm and 19 remote

bus bays. There are a total of 82 aircraft stands, all of which have a fueling pit. This is the

first time that the parking stands in Indian airports have had fuelling pits.

A car park for 4,000 cars was built in front of the terminal building at ground level.

The airport currently has one runway, which can accommodate all types of aircraft

including the Airbus A380. There are plans to build a second runway when the annual

traffic of the airport reaches 18 million passengers a year which is currently estimated to

reach around 2013‐2014.

The runway, orientated 09/27, is 4,900m (16,076ft) by 45m (150ft) with light paved

shoulders making it 60m (200ft).

Bangalore International Airport also have a retail centre, a multi‐cuisine food court area,

an adventure play area, and a day care facility for the children of the passengers.

2.1.2. CARGO VILLAGE

The airport's cargo village, spread over 11 acres of land, began operations in early

January 2009. It is expected to strengthen the commerce and trade in Bangalore,

ensuring speedy clearances of import and export consignments from the cargo

terminals at the airport.


An investment of about $2.5m (INR120m) has been made towards the facility, which

was completed over a period of ten months. The facility will house 120 freight

forwarders and 80 custom house agents.

2.1.3. PARTNERS FOR AIRPORT SERVICES

Bangalore International Airport is the first airport in India to operate under a truly open‐

access model. This allows every qualified fuel supplier to use the facility against a fixed

throughput fee and allows airlines to get the best fuel prices available in the market.

BIAL has selected its strategic partner for the new airport's aviation fuel facility. The

consortium is Indian Oil / Indian Oiltanking / Skytanking. Indian Oil is the largest oil

company and also the largest aviation fuel company in India. Skytanking is a major

independent jet fuel handling company and operates various aviation fuel facilities

worldwide, especially in Europe and the United States. It is owned by the Hamburg‐

based company Marquard and Bahls. Indian Oiltanking is a 50/50 joint venture between

Indian Oil and Marquard and Bahls. Each party holds one third in the equity of the

consortium.

The airport was opened with the capacity to handle 11‐12 million passengers a year and

27 aircraft an hour. BIAL has also selected catering partners. These are LSG Sky Chefs

and Taj SATS. Each of the selected consortiums is responsible for the design,

construction, finance and operation of the flight kitchen at the new Bangalore

International Airport. The combined investment is over $14m (INR700m) and the

duration of the contract is 15 years. BIAL may award a third license for air catering at a

later date.

2.1.4. ROAD AND RAIL INFRASTRUCTURE

As the new airport is 40km (25 miles) outside the city, a new high‐speed rail link, is being

planned to connect the city to the airport. The various road and rail connectivity means

are as follows:


• NH‐7 to BIA is 6‐lane divided carriageway. NHAI is in the process of widening the

NH‐7 from existing 6‐lanes to 8‐lanes, which can sustain higher traffic due to

airport expansion and expected real estate developments on either sides of the

NH‐7.

• Bangalore Metro Rail covering a length of around 33 kms spread over the North‐

South and East‐West Corridors is under construction by Government of

Karnataka at an estimated project cost of INR 64 billion (US$ 1.5 billion). The

project is expected to be completed by 2010‐11.

• In order to ensure fast and easy connectivity from Bangalore City Centre to the

International Airport, Hi‐Speed Airport Rail link of around 34 kms from CBD to

the Airport is under development, which will enable passengers to reach the

Airport around 25 minutes.

BIA

NH‐7

PRR

BMIC

MetroHSRL

Mono rail

CRS


• Monorail is also planned for development to serve as feeder lines to Metro

• Commuter Rail system enabled to connect Devanahalli with Yeshvantpur via

Yelahanka

• Bangalore‐Mysore Infrastructure Corridor (BMIC) Project comprising of

construction of a 6‐lane tolled expressway between Bangalore and Mysore,

development of 5 integrated townships, power plant, tolled ring roads around

Bangalore to ensure fast and easy connectivity between the 2 cities and

commercial development along the corridor is under implementation on PPP

basis.

• Government of Karnataka is developing the Peripheral ring Road (PRR) as 8‐lane

expressway along the periphery of Bangalore for a total road length of 109 km.

BIA


Bangalore Metropolitan Transport Corporation runs eleven bus routes from locations in

the city to connect to the new airport. The airport can be reached through Hebbal via

Bellary Road, through NH‐Yelahanka people can also reach BIAL through Yelahanka via

Vidyaranyapura where traffic is less congested.

BMTC has 46 Volvo buses plying to the airport, and the number of buses on each route

ensures a frequency of at least one every 30 minutes.

Official transportation by BIAL:

• MeruCabs and Easycabs for taxi services

• Hertz and Akbar Travels for luxury transport services

• BMTC Vayu Vajra A/C Volvo buses

• BMTC Suvarna and Vahini non A/C buses

The Indian railway authority is also planning to construct a railway terminal at the

airport to run a special shuttle from Cantonment railway station to the new airport.


2.1.5. BANGALORE INTERNATIONAL AIRPORT AREA PLANNING AUTHORITY

(BIAAPA)

The airport is expected to act as regional hub for global connectivity and would

accelerate infrastructure & real estate development in and around the airport. As part

of BIA project, a Special Economic Zone and commercial developments are proposed

within the Airport.

BIA and DBP falls under the jurisdiction of Bangalore International Airport Area Planning

Authority (BIAAPA) formed by Government of Karnataka to ensure organized

development of an area of 985 sq.km comprising part of Bangalore North, Devanahalli,

Dodaballapur taluks.

Bangalore International Airport at Devanahalli is to be surrounded by some of the most

eco‐friendly settlements and no development will be allowed on the natural river valleys

in the area, as per BIAAPA. This is despite the fact that there will be greater population

pressure in the area.

According to the Outline Development Plan (ODP) notified by the Bangalore

International Airport Area Planning Authority (BIAAPA) ‐ the primary land‐use

sanctioning authority for the area, no development will be allowed to destroy the

natural river valley network in Doddaballapur, Devanahalli and Vijayapura in the

outskirts of the city.

BIAAPA is also proposing to mandate rainwater

harvesting in the airport, as water is one resource

that the region and its residents are short of. The

airport area covering three towns and 347 villages

would ensure that the entire course of water

resources and catchment areas are maintained.

The ODP, projecting land‐use zoning in the next 15

years, also proposes separate sewage treatment

plants for each of the major towns. It was expected

that the population in the area would from 2,000 to

over 10,000 by the time the airport was finished in 2008, and the water resources


required for this additional population would be 90 to 100 million litres of water a day.

Clearly in these areas careful planning is required to allocate and conserve resources.

The proposed growth of population and economy as per CDP is expected to generate

high travel demand.


PROPOSED DEVELOPMENT


3. PROPOSED DEVELOPMENT

Devanahalli, with enhanced connectivity, is emerging as a sister city to Bangalore with

major investments pouring in for development. A cumulative investment of close to Rs.

1,15,000 crore worth would develop this once sedate location booming with activity to

compete with Bangalore in terms of business and social life. And this is apart from the

investments coming in from the hospitality industry and the entertainment sector,

which is expected to prop up this place as an ideal social location in addition to an

industrial hub.

The developments proposed around the Bangalore international airport are categorized

as follows:

• Information Technology / Information Technology enabled services &

Biotechnology

• Special economic zones


• Residential complexes such as real estate development

• Hospitality and entertainment

• Aero‐Industry

• Medical hub

• Finance and Business districts

The State government has identified the area in Devanahalli taluk where about 10,000

acres of land would be acquired to set up the Information Technology Investment

Region (ITIR).

Also among the major projects reported to have received, the Udyog Mitra clearance for

the Aero SEZ (special economic zone), an aviation hub in Devanahalli, is expected to see

major US civil and military aviation companies as well as the European Aeronautics and

Defence Systems (EADS) pump in up to Rs. 11,700 crore as investment.

The Indian initiatives at the SEZ would see Rs. 666 crore of investment from Sobha

Nadathur Aerospace Pvt Ltd (Rs. 200 crore) and Dynamatic Technologies, manufacturers

of hydraulic equipment (Rs. 466 crore).

3.1. MOUs SIGNED AT GLOBAL INVESTORS MEET

The Global Investors Meet (GIM) was held in Bangalore Karnataka for 2 days on June 4

and June 5, 2010. During the meet 413 MoUs (Memorandum of Understandings) were

signed of value Rs 4,73,382 crore. The details of the MoUs signed during the GIM for the

projects located around Bangalore International Airport are set out in the table below.

S No Company Project Location Proposed investment (Rs. Crores)

Employment generation

1 Narayana Hrudayalaya Pvt. Ltd

To set up 5000 Bed Super Speciality Hospital, Star Category Hotel and Service Apartments

Singahalli, Bandikodigehalli & Bagalur

990 14,600

2 Shell Technology

To set up Technology Centre for Oil & Gas related

KIADB Hardware

1,376 1,200


India Pvt.Ltd activities Industrial Area, Devanahalli

3 Hindustan Aeronautics Limited (HAL)

To establish a unit for manufacture of “TPE 331 Engine and Engine components, Ring Rolling, Fan cases, Welded Structural assemblies, Maintenance, Repair and Overhaul of Civil Aircraft / Engines and Manufacture of Helicopters”

Aerospace SEZ, Devanahalli

2,095 1,631

4 BEML Limited

To manufacture Aircraft Components / Assemblies and MRO Activites related to Aerospace Applications at Aerospace SEZ

Bangalore International Airport, Devanahalli

316 235

5 Dynamatic Technologies Limited

To manufacture Aerospace Components

KIADB Aerospace Industrial Area, Devenahalli

466 2,100

6 IFCI Infrastructure Development Limited

To establish a Financial City Devanahalli Industrial Area

997 4,300

7 Trishul Developers

To set up 5 Star Hotel, Office Space & Service Apartments

Hebbal 119 2,100

8 City View Bangalore Properties Private Limited

To set up Hotel, Office space and Serviced Apartment

Bellary road 971 760

9 Healthcare Global Enterprises Ltd

Comprehensive Cancer Treatment Centre

Devanahalli 137 1,000

10 Tata Elexi Hardware Design And Development

Hardware Park, Devanahalli

486 8,683


INFORMATION TECHNOLOGY, INFORMATION TECHNOLOGY ENABLED

SERVICES & BIOTECHNOLOGY


4. INFORMATION TECHNOLOGY, INFORMATION TECHNOLOGY

ENABLED SERVICES & BIOTECHNOLOGY

With Bangalore being home to some of the most high tech industries in India, Karnataka

government has initiated the process of creating the third information technology (IT)

hub in Bangalore city near its new airport at Devanahalli with an investment of Rs

1,00,000 crore. The city already has two technology parks located in south and

southeast ‐ Electronic City, and International Tech Park Ltd. The new hub will come up in

the northeast part of the city.

The proposed developments around Bangalore International Airport are elucidated in

the following sections.

4.1. INFORMATION TECHNOLOGY INVESTMENT REGION (ITIR)

The proposed ITIR would be specifically delineated investment region with a minimum

area of around 40 Sq.kms. (about 10,000 acres of land),which may include Special

Economic Zones, Industrial Parks, Export oriented units, Free trade and Warehousing

zones. The ITIR would be a combination of production units, public utilities, logistics,

environmental protection mechanisms, residential areas and administrative services,

with excellent infrastructure. It is located at a distance of 15 km from Bangalore

International Airport. It would be situated at the Nandi foothills near Muddenahalli,

Kanivenarayanapura, and Chikballapur. The project has received final central and state

cabinet approval on January 28th, 2010 and is under development.


The ITIR is one of the largest infrastructure projects in Karnataka's history. Total cost is

expected to be one lakh crore rupees ($22 Billion). The initiative will provide direct

employment to 1.2 million people and indirect employment to 2.8 million. Development

would involve a Centre‐State partnership in conjunction with private partners. The

region would be developed as an integrated township through public private

partnership. The township will have residential areas, schools and other public utilities,

and will include environmental protection mechanisms.

Basic infrastructure such as road, rail and telecommunication links would be provided by

the Centre. The State governments would provide physical infrastructure and utilities,

including power, water, sewerage and effluent treatment facilities. The Karnataka State

Electronics Development Corporation (KEONICS) has recently issued Expression of

Interest (EOI) for developing the region. 55 multinational IT companies including Infosys,

Wipro, TCS, and Cognizant have signaled an interest in joining.

4.1.1. POLICY FOR INFORMATION TECHNOLOGY INVESTMENT REGIONS (ITIR)

The ITIR scheme was notified by the Union Government in May 2008 to provide

readymade and developed infrastructure to potential investors in the IT sector. The

policy envisages that State governments would ensure the provision of physical

infrastructure and utilities, including power, water, roads, transportation, sewerage and

effluent treatment facilities within notified ITIRs. In lines with this policy, a separate

legislation would be enacted by the state government to govern the proposed ITIR area.

ITIRs were conceptualized keeping in view the need to boost the growth of both IT/ITES

and Electronic Hardware Manufacturing (EHM) Units.

The regions would be a combination of IT/ITES and Electronics Hardware Manufacturing

Units; Public uitilities, residential area, social infrastructure and administrative services.

Such regions could include new integrated townships, SEZs, industrial parks etc. In the

ITIR, there would be a clear delineation between the IT/ITES areas and Electronic

Hardware Manufacturing areas. The ITIRs would generate direct and indirect

employment during the construction and operational phases.


Each ITIR is expected to be a specifically notified investment region with minimum area

of 40 sq.km planned for IT/ITES and EHM Units. The minimum processing area will be

40% of the total area of the ITIR. The ITIRs will be developed in a phased manner.

The State Government would ensure that all physical infrastructure and utilities within

its jurisdiction (power, water, roads, transportation, sewerage and effluent treatment

facilities) are provided. The Central Government will facilitate development of National

Highways, Airport and Rail links to the ITIRs. The Public‐Private Partnership (PPP) route

is advocated for the development of ITIRs. State Government would select the

developers/co‐developers through a transparent process.

4.2. OTHER PROPOSED DEVELOPMENTS

Infosys have planned to invest Rs. 710 crore for 12,000 seat software developments

centre over 40 acres in Devanahalli Industrial Area. Wipro have also planned to come up

with IT/ITeS SEZ in Devanahalli taluk, employing 15,000 people, at an investment of Rs.

477 crore. The other investment proposals approved by the authority are as follows:

Company Name Product Investment in Rs. Crores

Land (acres)

Blue Hill Informatics Pvt. Ltd

SEZ for IT/ITES 506.9 112

Itasca Software Development Pvt. Ltd

SEZ for IT/ITES 1130 325

TCS Ltd SEZ for IT/ITES 500 100 Indiland SEZ Projects (Bangalore) Pvt. Ltd.,

IT / ITES SEZ 443.5 25

Cornerstone Shelters Pvt. Ltd.

Info‐Tech/Hardware/Bio‐Tech Park with common facilities

1600 200

Ranka & Shah Developers Pvt. Ltd.

SEZ for IT/ITES 430 33.7

Chandra Developers Pvt. Ltd.

IT/ITES Park 459.98 25

ETL Infrastructure Services Ltd.

IT Park ‐ Disaster Recovery Facility Centre

993 15


Company Name Product Investment in Rs. Crores

Land (acres)

Wipro Limited IT/ITES SEZ 477 40 Just Dial Pvt. Ltd. IT/ITES – BPO &

Software Development

445.08 15


DEVANAHALLI BUSINESS PARK


5. DEVANAHALLI BUSINESS PARK

One of the biggest projects coming up adjacent to the Bengaluru International Airport

(BIA), the Devanahalli Business Park (DBP) is expected to attract an investment of $2.2

billion over the next five to seven years. Karnataka State Industrial Investment &

Development Corporation Limited (KSIIDC), at the behest of Government of Karnataka

(GoK), is developing DBP on the site of around 413.65 acres owned by KSIIDC along the

National Highway‐7 (NH‐7) and adjoining the northern boundary of Bengaluru

International Airport (BIA) near Devanahalli, around 35 kms north of Bangalore city.


Once completed, nearly 2.5 lakh people are expected to work or visit the DBP. Among

those that have been planned in the park include multi‐speciality hospitals, special

economic zones, entertainment area, star hotels and others. As per the suggested land

use plan, the DBP will boast of two IT & ITeS parks/SEZs on 50 acre plot, a central

business district on 35 acre plot, besides other facilities such as three multi‐speciality

hospitals, finance district, retail & entertainment, office complex, aviation academy and

other utilities. A 10‐year tax and duty exemptions on operations of both the SEZ

developer and SEZ occupants has been envisaged.

The suggested land use plan for the business park as per authority is as follows:

Description Area (in acres)

IT & ITES Parks/SEZs (2 Nos.) 50 Central Business District 35 Multi‐Specialty Hospitals (3 Nos.) 26 Finance District 25 Light Goods Manufacturing/ Assembly 25 Retail & Entertainment 12 5‐star Hotel 10 Office Complexes (2 Nos.) 21.23 Aviation Academy 10 Vehicle Parking spaces 2.73

IT & ITES Parks/SEZs 16.2%

CBD11.3%

Multi‐Specialty Hospitals8.4%

Finance District 8.1%

Light Goods Manufacturing/ Assembly

8.1% Retail & Entertainment 3.9%

5‐star Hotel 3.2%

Office Complexes 6.9%

Aviation Academy 3.2%

Vehicle Parking spaces 0.9%

Roads & Utilities20.6%

Greenery9.2%

DBP ‐ Land use plan


Description Area (in acres)

Roads & Utilities 63.74 Greenery 28.37


AEROTROPOLIS – AIRPORT CITY


6. AEROTROPOLIS

Aerotropolis is a word that is created out of two words – airport, and metropolis. Like

SEZ, PCPIR or Chemical Hub, it is another new term that we must familiarize ourselves

with in order to understand the neoliberal onslaught on the masses. In short, it is an

airport township. At its heart there would be an airport, which would be surrounded by

residential units, golf courses, hotels, multi‐story residential high‐rises, malls, etc. These

are to be the new nerve centers of the modern civilisation.

An Aerotropolis is a city in which the layout, infrastructure and economy are centered

around a major airport. Experts in the field are of the opinion that airports will shape

business location and urban development in this century as much as seaports did in the

18th Century, railroads in the 19th Century and highways in 20th Century.

The Airport City proposed to be developed would spread over 215 acres and witness

over a million people live and work in BIA. BIAL envisages the Airport City to be a

flourishing destination in itself, wherein people will not only board/alight from flights

but also relax, do business and shop. The City would have more hotels complimenting

one another, along with destination retail, serviced apartments, office park and a

software campus.

6.1. CONNECTIVITY & TRANSPORT INFRASTRUCTURE

The City can be accessed by a ringed network transport system consisting wide three

lane roads, dedicated perimeter bus lanes with bus stands located at strategic points

with over‐bridge/underpass pedestrian connections. It will have space to park over

40,000 cars.

The Airport City would be connected to the proposed high‐speed rail link and the road

expressway from the central business district, M G Road.

6.2. AEROTROPOLIS ‐ ZONES

It would comprise three prime zones of development viz, Downtown, Business Unit and

Technology Centre. Each area is positioned differently.


6.2.1. DOWNTOWN

Closest to the terminal building, Downtown will be positioned as a typical urban

entertainment hub spread over approximately 39 acres of land. It will house a shopping

area with various retail formats, entertainment facilities, offices and hospitality facilities.

An ‘Airport Visitor Centre’ is also planned opposite the Downtown area.

6.2.2. BUSINESS UNIT

Lying between the Downtown area on the east and the middle area on the west,

Business Unit will be built on approximately 46 acres of land. It will house a business‐

park for premium office space and consist of support retail, a 3 star and 4 star hotel.

6.2.3. TECHNOLOGY CENTRE

To promote the concept of ‘Bengaluru International Airport’ as a business address, the

Technology Centre spread over 90 acres and situated just a few minutes drive from the

airport terminal building, is expected to be a hub for global multinational conglomerates

that will have the option of establishing high‐end research campuses for highly qualified

personnel engaged in cutting edge development.

The Technology Centre is part of a multi‐product SEZ, which has recently been formally

approved by the government of India.

Airport Hotel: Avoiding gridlocking the central business district of Bangalore, the busy

traveller and the executive will have easy access to a hotel at the BIA.

Constructed by a consortium of Larsen and Toubro and the Oberoi Group under the

‘Trident’ brand at a cost of Rs 250 crore, the hotel is located within walking distance

from the terminal building. The Airport City will create one lakh jobs for qualified

people. It will strengthen and foster the economic growth of the City and the State


GLOBAL FINANCIAL DISTRICT


7. GLOBAL FINANCIAL DISTRICT

To promote the State as a global investment destination, the government is in talks with

banking giants to set up a Global Financial District near Devanahalli, spread over 150

acres, which will also house a residential township. The district would provide

specialized services for banks, insurance companies, stock exchanges and others players

in the financial services sector. Some of the features of this district are,

• An investment of about Rs. 1,000 crore planned in 150 acres of land

• 45 banks have shown interest to have their offices in the hub

• The project would include a township for the employees of the institutions in the

district

• India Infrastructure Finance Corporation has come forward to set up the hub in

association with the banks that show interest in investing on the project

This hub, expected to be ready in the next 18 months, will house corporate arms of all

leading banks in India, insurance companies and financial companies that deal with

needs of industries.

Industrial Finance Corporation of India (IFCI) has planned to invest Rs. 1,000 crore to set

a base in the proposed global financial district in 50 acres of area out of total 150 acre

district.


AEROSPACE PARK


8. AEROSPACE PARK

The park with facility for aircraft component manufacturing and accessories was being

developed near the airport in 1000 acres area. About 250 acres of the land will be

earmarked for a special economic zone (SEZ) in the aerospace hub.

The Aero SEZ is being worked out in collaboration with the US Aerospace Supplier

Development Mission to India to introduce American companies to Indian joint‐venture

groups, industry representatives, and Western original equipment manufacturers based

here. The SEZ would also introduce the US companies to industry and government

officials here to learn about opportunities they can exploit through various aerospace

programmes.

The aerospace park is being located adjacent to a 1,000 acre electronic hardware park

and a 1,000 acre software park, which will enable the aerospace industry to leverage the

strengths of the IT sector. The park would include an aviation MRO‐related activities

(maintenance, repair, and overhaul) and 250 acre of an export‐oriented aerospace SEZ.


The proposed projects approved by the authority are as follows:

Also among the major projects reported to have received the Udyog Mitra clearance for

the Aero SEZ (special economic zone), an aviation hub in Devanahalli, is expected to see

major US civil and military aviation companies as well as the European Aeronautics and

Defence Systems (EADS) pump in up to Rs11,700 crore as investment. The Indian

initiatives at the SEZ would see Rs666 crore of investment from Sobha Nadathur

Aerospace Pvt Ltd (Rs200 crore) and Dynamatic Technologies, manufacturers of

hydraulic equipment (Rs466 crore).

Company Product Investment (crores)

Land (acres)

Bangalore International Airport Ltd.

Airport based Multi Product SEZ

3384.65 279

Hindustan Aeronatuics Ltd.

TPE 331, Engine and Engine components Ring Rolling, Fan cases, Welded Structural Assemblies, Maintenance & Repair

2095 150

Dynamatic technolgies

Aerospace Components

465.8 2100


MEDICAL, HOSPITALITY & ENTERTAINMENT


9. MEDICAL, HOSPITALITY & ENTERTAINMENT

9.1. MEDICAL TOURISM HUB

Karnataka provides phenomenal tax benefits for healthcare investors. With 39 medical

colleges and a prestigious university like Rajiv Gandhi University of Health Sciences,

there are adequate human resources. Favourable weather is another big factor for most

medical specialists to stay on in Bangalore.

As per the study conducted by National Population Stabilisation Fund and National

Informatics Centre, Bangalore would become second in healthcare services in near

future. According to the Medical Education minister of the state, an exclusive health city

would be developed at the Bengaluru International Airport through PPP in future.

Karnataka State Tourism Development Corporation (KSTDC) would develop hub in 300

acres of land with facilities like private hospitals, diagnostic centers, Ayurvedic resorts

and centers offering alternative systems of medicine

The projects approved by the authority are,

• Narayana Hrudayalaya Ltd to invest Rs.990 crores in 30 acres

• Health care global enterprises ltd to set up Comprehensive Cancer Treatment

Centre, Centre of Excellence in Oncology, Nursing College and Training Centre

with an investment of Rs.136 crores spread across 6 acres of area

9.1.1. NARAYANA HRUDAYALAYA SUPER SPECIALITY HOSPITAL

Narayana Hrudayalaya group has Narayana Health City at Bangalore covering 25 acres of

land and Rabindranath Tagore International Institute of Cardiac Sciences and Rotary

Narayana Nethralaya a Super Specialty Eye Hospital. It has also proposed to set up a

super specialty hospital with following features:

• Proposed investment – Rs.990 crores.

• Project Details – to set up 5000 Bed Super Specialty Hospital, Star Category Hotel

and Service Apartments.


• Location – KIADB Industrial Area, Near Bangalore International Airport

(Singahalli, Bandikodigehalli & Bagalur), Bangalore North Taluk, Bangalore

District.

• Employment Generation – 14,600

• Signatory to MOU from Govt – Principal Secretary, Medical Education

9.2. BANGALORE TURF CLUB

The Karnataka Government has decided to shift the Bangalore Turf Club (BTC) located in

the heart of the city to a new location, Chikkajala in Devanahalli taluk. Bangalore Turf

Club with an investment of Rs. 350 crores has been planned to be set up in Devanahalli.


9.3. UPCOMING HOTEL PROJECTS AROUND DEVANAHALLI

Zuri Hospitality India (Private) Ltd, Indian arm of the global Zuri Group promoted by a

consortium of investors from the Middle East, will soon start work on a new hotel

project at Devanahalli, near the new Bangalore International Airport. This 150 room five

star hotel is being built at a cost of Rs 200 crore on a 6 acre plot and will be operational

in the third quarter of 2011.

Other hotel projects that are set to come up in this region include Oberoi at Bangalore

International Airport, Hyatt Residency and Oberoi Luxury hotel in the Hebbal lake area,

and Taj Airport Hotel and Holiday Inn at Devanahalli.


RESIDENTIAL COMPLEXES


10. RESIDENTIAL COMPLEXES

According to real estate consulting firm Cushman & Wakefield, prices in the Yelahanka‐

Devanahalli stretch, right immediately after the Bangalore International Airport project

was announced, ruled around Rs 50 lakh to 3 crore per acre. At a time, when sale of

residential units have apparently taken a hit due to high home loan interest rates,

interest seems to be running high in properties being developed around Devanahalli

area.

According to a leading city‐based broking firm, which has a land parcel of 600 acres for

sale in the region, the prices quoted by owners of these land banks range between Rs 25

lakh and Rs 1 crore an acre.

Multiple premium residential complexes coming up in and around Devanahalli are

expected to bring ina total investment of Rs. 1500 crores.

QVC Realty is aslo coming up with ‘QVC Hills’, which is a residential community, spread

over 62.5 acres located at the foothills of Nandi Hills in North Bangalore. Biodiversity


Conservation (India) Ltd has on offer the small but much‐celebrated residential BCIL

Collective. BCIL has laid its bets on this area, with two more ambitious eco‐projects —

both residential — which are on the anvil and will be launched later this year. Mantri

Developers has upcoming projects in Hennur, Jakkur and Hebbal that are yet to be

announced. Prestige Estate Projects Pvt Ltd has recently launched a premium

development, ‘Prestige Golf Shire’ on the foothills of Nandi Hills. Prestige Estates

Projects Pvt Ltd will shortly be launching a villa development —Prestige Oasis with 182

independent homes spread on 33.5 acres of land. They are also marketing an apartment

complex, Prestige Wellington Park, and Prestige Kensington Gardens is under

construction.

The MetroCorp Group, one of the early developers to invest in the potential of North

Bangalore, has its flagship project MetroCorp Nirvana, set the trend for luxury

residential townships. Riding on this overwhelming success, the MetroCorp Group, in

partnership with Singapore’s Jurong International Group, has a pipeline of projects in

North Bangalore that cater to value‐for‐money, semi‐luxury and luxury segments.

According to Ali Vakil, Director, Vakil Housing Development Corporation Pvt Ltd, North

Bangalore still has tremendous potential left, because the upcoming airport still lacks

sufficient support infrastructure. In the next few years, this area will witness significant

boom in terms of new structures, employment and support services.

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