Peenya Transformed: Bengaluru’s Industrial Hub Enters New Era

A Landmark Move for Karnataka’s Economy

In a bold step toward economic revitalization, the Karnataka government has officially notified Bengaluru’s Peenya Industrial Area as a Special Investment Region (SIR), marking it as the 18th such zone in the state. Situated along the bustling Bengaluru-Tumakuru highway, Peenya stands as one of Southeast Asia’s oldest and largest industrial hubs, home to a vibrant ecosystem of manufacturing units producing engineering goods, electrical equipment, textiles, and a growing community of start-ups.

A Legacy of Industry and Innovation

Established in the late 1970s, Peenya Industrial Area (PIA) is nestled in northwestern Bengaluru and is renowned for its concentration of small, medium, and large-scale industries. The region has long been a cornerstone of Karnataka’s industrial landscape, driving innovation and employment across multiple sectors. Now, with its new SIR status, Peenya is poised to enter a transformative phase of growth.

The Power of SIR Status

According to a government notification issued on June 9, Peenya’s first, second, third, and fourth phases—spanning 1,461.46 acres—have been designated as a Special Investment Region. The Karnataka Industrial Areas Development Board (KIADB) has been appointed as the Industrial Township Authority, responsible for local administration, property tax assessment, and infrastructure development.

The SIR Act, introduced to streamline the development, governance, and management of large investment zones, empowers the state to define boundaries and promote integrated economic growth. With KIADB at the helm, project approvals are expected to accelerate, paving the way for a more business-friendly environment.

A Boost for Real Estate and Infrastructure

Real estate experts predict that the SIR designation will be a game-changer for Peenya. As the area evolves into a more organized industrial township, demand for residential real estate—particularly in the mid-income segment—is expected to surge. Improved infrastructure, better connectivity, and enhanced civic amenities are set to drive up both rental and capital values.

Digbijay Das, Senior Director, Valuation Services at Colliers India, highlights the transformative impact of the SIR status: “With KIADB collecting property tax and allocating 70% of the revenue for infrastructure, we expect significant upgrades in roads, drainage, street lighting, waste management, and power supply. The region will also see enhanced safety and support services, including new police stations, fire stations, and medical facilities.”

A Magnet for Talent and Investment

Peenya’s reputation as a diversified manufacturing hub is well-established, with a strong presence of MSMEs in engineering, auto components, electronics, and defense. The area enjoys excellent connectivity via National Highway 4 and the Green Line of Bengaluru’s Metro Rail, and is adjacent to key residential neighborhoods like Yeshwanthpura and Rajajinagar.

The SIR status is expected to attract more skilled workers, start-ups, and investors, further enriching Peenya’s dynamic ecosystem. “Rental and capital values will likely appreciate as infrastructure upgrades take effect,” Das notes. “Streamlined approvals under KIADB will also make it easier for businesses to set up and expand.”

A Vision for the Future

As Peenya embarks on this new chapter, the region is set to become a model for industrial and urban transformation in Karnataka. With improved governance, world-class infrastructure, and a thriving business environment, Peenya’s SIR status is a testament to the state’s commitment to sustainable growth and innovation.