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Tag: Karnataka

  • Google’s Andhra Investment a ‘Historic Loss’ for Karnataka, Says JD(S)

    The ruling Congress government in Karnataka has come under fire from opposition parties after Andhra Pradesh and Google inked a Memorandum of Understanding (MoU) on October 14 to build a top-notch AI data centre in Visakhapatnam. More than one lakh jobs are anticipated to be created by the $15 billion project, which is Google’s biggest investment outside of the US.

    Dr K Sudhakar, a former health minister and Chikkaballapura MP, stated on X that Andhra gains when Karnataka loses! Once the go-to place for multinational tech companies, Bengaluru and Karnataka are losing ground as a result of the Congress government’s indifference, haughtiness, and policy gridlock. Karnataka watches as jobs and opportunity shift to other places, while Andhra draws top-tier investments. Karnataka’s youth demand improved confidence, clarity, and governance.

    Political Players Calling it End of Tech Era for Bangalore

    Arvind Bellad, the deputy leader of the opposition, also blasted the current administration for all of the opportunities that were lost. “Bengaluru, which was once the Silicon Capital, is losing investors because of policy paralysis and arrogance,” he said. Instead of encouraging growth, ministers harm businesses. Karnataka’s economic narrative has been transformed into a governance catastrophe by the government.

    DK Shivakumar, the deputy chief minister, stated that he does not wish to respond to Andhra minister Nara Lokesh or anybody else. Bengaluru and Karnataka are unmatched. Bengaluru offers everything, from human resources and infrastructure to startups and innovation. There are about 25 lakh employees, including 2 lakh foreigners. The Centre receives 39–40% of its revenue from Bengaluru.

    Shivakumar added further that every day, he gets calls from leaders all over the world, and we talk about their needs. Many international businesses that previously operated out of rented offices are increasingly establishing campuses of their own. That is Bengaluru’s might. It is unmatched by any state in the nation.

    Janta Dal Calling it a ‘Big Blow’ to Karnataka

    The loss of Google’s AI project was referred to as a “major blow” to Karnataka by the Janata Dal (Secular), which cited missing investment possibilities and insufficient infrastructure. “The state loses the Google AI hub to Andhra Pradesh,” the party wrote in a tweet. Due to carelessness, Karnataka loses a project worth INR 1.3 lakh crore.

    A significant initiative that Karnataka missed out on: Google signs an MOU with Andhra Pradesh to establish #AIHub in Visakhapatnam, pledging INR 10,000 crore annually and 30,000 jobs. If a business-friendly atmosphere isn’t guaranteed, entrepreneurs might depart.

    Karnataka IT Minister Priyank Kharge expressed doubts about the sustainability of Andhra Pradesh’s incentives, which included subsidised land and water bills, free transmission, 100% GST reimbursement, and subsidies of INR 22,000 crore. “The ‘Global Investors Summit’ would not have drawn INR 10 lakh crore in investments this year if IT companies were leaving Karnataka,” said Karnataka Home Minister G Parameshwara.

    Quick
    Shots

    •Google inks $15 billion MoU with
    Andhra Pradesh to set up a world-class AI data centre in Visakhapatnam.

    •The project is expected to create
    over 1 lakh jobs, marking Google’s largest investment outside the US.

    •JD(S) and BJP leaders call it a
    “historic loss” and “major blow” for Karnataka.

    •Criticism mounts on Karnataka’s
    Congress government over policy paralysis and investor flight.

  • Karnataka Launches INR 1,000 Cr Quantum Mission to Become Asia’s Quantum Capital by 2035

    With the goal of making the state the “Quantum Capital of Asia” and establishing a $20 billion quantum economy by 2035, the Karnataka government has started the INR 1,000 Cr Quantum Mission.

    According to the ET, Chief Minister Siddaramaiah stated that a Quantum Technology Task Force will direct policy and that Q-City, manufacturing zones, and quantum parks will encourage creativity in the state. He was speaking at the Bengaluru 2025 conference of Quantum India on 31 July.

    Commenting on the development, Bruce Keith, Cofounder, InvestorAi stated, “As one of the few foundational AI companies in India, we welcome Q-City and the other Karnataka initiatives. We have found the AI talent pool at the foundational end to be quite shallow so the PhD fellowship and college skilling programmes are very welcome. I believe that the transition from IT Services to specialised product niches is key to ensuring India’s success in this rapidly changing AI era.”

    Quantum Skilling and Job Creation in Karnataka

    The chief minister went on to say that the state wants to make Karnataka the Quantum Capital of Asia by 2035 and create 10,000 high-skilled jobs. In addition, the government intends to establish 150 PhD scholarships and quantum skilling programs in 20 colleges throughout the state.

    India’s First Quantum Hardware Park

    In order to increase domestic production of quantum components, Karnataka will construct India’s first Quantum Hardware Park, four innovation zones, and a specialised fabrication facility, Siddaramaiah added.

    In order to create two lakh jobs in the industry, the state would also set aside a Quantum Venture Capital Fund to invest in over 100 firms and assist in the creation of 100 patents.

    The decision was made at a time when the quantum technology industry is receiving more attention, with companies speeding up their products and looking to raise money to secure their place in the global market.

    How Karnataka’s Mission Aligns with India’s NQM?

    In 2023, the National Quantum Mission (NQM) was approved by the union cabinet, with a total expenditure of INR 6,003.65 Cr from FY24 to FY31. Under the Department of Science and Technology, the mission seeks to establish a dynamic and creative ecosystem in QT by establishing, fostering, and expanding scientific and industrial R&D.

    In August of last year, the NQM made public its intention to award funds to ten to fifteen businesses engaged in quantum technology.

    The development of very sensitive magnetometers in atomic systems and atomic clocks for accurate time, communications, and navigation will be the main goals of the National Quantum Mission.

    How NQM will help in Creating Quantum Devices?

    For the creation of quantum devices, NQM will also aid in the design and synthesis of quantum materials, including superconductors, innovative semiconductor architectures, and topological materials. Quantum communications, sensing, and metrological applications will also see the development of single-photon sources/detectors and entangled-photon sources.

    The nation’s technology development ecosystem might become globally competitive with the help of NQM. With applications in medication design, space, banking, security, and other areas, the mission would have a significant positive impact on a number of industries, including communication, health, and finance.

    Additionally, the Mission will significantly advance national initiatives such as the Sustainable Development Goals (SDG), Digital India, Make in India, Skill India, Stand-up India, Start-up India, and Self-reliant India.

    Recent Quantum Startups Backed by NQM

    In April of this year, QNu Labs, a quantum cybersecurity business, obtained INR 60 Cr in Series A funding backed by the NQM. Only a few weeks ago, the deeptech startup QpiAI earned $32 million in its Series A fundraising round, which was co-led by Avataar Ventures and NQM.

  • Karnataka Stands Firm on Bike Taxi Ban, No Plans for Review

    According to reports, the Karnataka state government has no intention of revising its March 2024 ruling banning bike taxi activities, despite the state’s imminent prohibition on the service.

    The Karnataka High Court has extended the deadline for stopping bike taxi services till June 15; however, the prohibition is expected to have a significant impact on millions of commuters, lakhs of bike taxi drivers, and aggregators like Ola, Uber, and Rapido.

    The HC granted the extension after the three had already filed a case contesting the Karnataka state government’s decision. Not to mention, the HC gave these bike platforms six weeks to cease operations in the state in its April 2 ruling, citing the Motor Vehicles Act of 1988’s lack of a legal framework.

    According to a media report, the government is reluctant to reevaluate the prohibition because, in contrast to cars and taxis, bike taxis are mostly used for private purposes and do not pay ongoing taxes.

    Although there is only a one-time lifetime tax applied when buying a bike, around 1.7 lakh cars travel Bengaluru’s roads and are subject to periodic taxes. Similar tax laws also apply to taxis.

    Change in the Tax System of Commercial Vehicle

    The tax structure pertaining to commercial vehicles, such as cars and taxis, has recently changed. As of May 2025, the majority of commercial vehicles are now subject to a lifetime tax scheme, whereas cars and taxis previously paid quarterly taxes.

    Ramalinga Reddy, the transport minister for Karnataka, has ordered the transport department to implement the High Court’s decision to halt bike taxi activities in a similar manner. It is anticipated that commuters will pay more if there are no bike taxis available.

    To make matters worse, the Bangalore Metro Rail Corporation Limited (BMRCL) raised metro fares by about 50% earlier this year, and state-run bus fares have already climbed by 15%. Between 75,000 and 1 lakh bike taxi users in Bengaluru are thought to be connected to several ride-hailing services.

    Rapido said at the previous HC hearing that the livelihoods of about 6 lakh bike taxi drivers connected to the platform would be impacted by the court’s prior order. This measure clearly benefits cab service providers and autorickshaw operators. Karnataka has been experiencing continuous turmoil due to the purportedly unlawful activities of bike taxis.

    The transport department launched a specific enforcement campaign against these services in response to protests spearheaded by unions representing drivers and autorickshaws.

    Demand of Regulatory Framework for Bike Taxis

    Growing worries about women’s safety are the reason behind the call for an appropriate regulatory framework for bike taxis. Additionally, Karnataka was compelled to discontinue its e-bike program, which was started in 2021 to enhance first- and last-mile connectivity from train, bus, and metro stations.

    Following union-led protests over alleged scheme misuse, the action was taken. Simultaneously, unions representing bike taxis have demonstrated opposition to specific state initiatives. In the past few years, there have been multiple incidents of physical confrontations between car drivers and bikers, and numerous films of abuse of bike taxi drivers have gone viral.

    Citing allegations of conflicts between car drivers and bike taxi operators in the city, the Bike Taxi Welfare Association filed a case in the High Court. The High Court ordered the state government to preserve bike taxi activities in Karnataka in response to this appeal.

  • Karnataka High Court Orders Centre to Block Proton Mail

    Proton Mail, which uses end-to-end encryption to safeguard customer data, has been ordered to be blocked in India by the Karnataka High Court. A Bar and Bench article claims that during the hearing of a petition submitted by M Moser Design Associates India, Justice M Nagaprasanna made the directives.

    The email service was allegedly used to send offensive emails about the petitioner’s employees, according to the plea, which also stated that investigations are impossible due to the anonymity of the site.

    To impose the blocking order, the court cited Rule 10 of the 2009 blocking rules and Section 69A of the IT Act, 2008. The petitioner contended that Proton Mail does not require identity verification and enables users to evade Indian surveillance.

    The request claimed that Proton Mail poses a concern to national security and was also used to make recent bomb threats, citing media sources.

    Not Following India’s Guidelines

    Advocate Jatin Sehgal argued on behalf of the petitioner, claiming that the Proton Mail website offers guidance on how to avoid being monitored by Indian authorities. Additionally, he underlined that there is no need for any kind of ID verification and that creating a Proton ID only takes 30 seconds.

    During the hearing, the Center’s attorney informed the court that any cooperation from Swiss authorities—where Proton is headquartered—must be initiated by a trial court and go through the Mutual Legal Assistance Treaty (MLAT).

    Until the Proton Mail website in India is blocked, the HC ordered the immediate removal of the “offensive” URLs listed in the petition. Proton Mail is under increasing pressure in India as a result of the most recent instance.

    Bomb Threats Emails Sent Using the Proton Mail

    After 13 Chennai schools received fictitious bomb threats using Proton Mail in February of this year, the Tamil Nadu police petitioned the Union IT ministry to block the service nationwide.

    The local law enforcement agencies claimed that they were unable to determine the origin of the emails at the time due to the Swiss company’s lack of cooperation and the service’s end-to-end encryption.

    Then the IT ministry accepted a block order after the Section 69A blocking committee recommended it. In the past, Proton Mail and Centre also had disagreements.

    It withdrew its physical servers from India in 2022 in opposition to new CERT-In rules requiring cloud service providers and VPNs to retain data. According to the corporation, the Telecommunications Act of 2023 is a “threat to democracy”, and the country’s monitoring regulations are “regressive”.

  • Karnataka Government’s Elevate Chooses 101 Startups, Provides INR 25 Cr in Seed Money

    The Karnataka government has funded 1,084 businesses with INR 249 crore in seed money through 21 rounds of the ELEVATE programme. Priyank Kharge, the state’s Minister of Biotechnology and Information Technology, disclosed these numbers during a just-concluded event. A grant-in-aid seed-funding programme called ELEVATE was created to assist Karnataka’s early-stage businesses. A total of INR 25 crore in subsidies have been given to 101 businesses under ELEVATE 2024. Of these, 36 are from outside Bengaluru, while 42 are led by women. The awards are worth between INR 21 lakh and INR 50 lakh. These businesses operate in a variety of industries, such as biotechnology, aerospace, sustainability, and rural innovation. At a fund-disbursement event on March 26, Kharge stated that many people had previously questioned the ELEVATE programme. Nonetheless, it has now provided funding to over 1,000 firms, of whom 25% are led by women and 30% are from rural regions. He went on to say that the government was dedicated to lowering regulatory barriers, increasing financing options, and guaranteeing access to international markets.

    90 Days of Evaluation

    According to department officials, the ELEVATE 2024 application and evaluation procedure was finished in 90 days. K-Tech Hubs and Centres of Excellence have been assigned to coach and incubate winning startups. The winners include Baeru, an ocean waste recovery startup that empowers rural women; Okulu Aerospace, which provides UAV surveillance solutions; Iniya Bioprobes, a biotech company based in Mysuru that develops microbial pigments; and Microleer Biopolymers, which makes vegan leather. According to Kharge, Bengaluru is leading the world’s startup revolution. There are already 45 unicorns in India’s Garden City, valued at a total of $161 billion. Through programmes like ELEVATE, the government hopes to place Karnataka in the top three worldwide startup ecosystems. The event was attended by about 300 people, including industry stakeholders and company founders. With Pocket Coach Technologies and Zebu Films among the top-funded businesses, the AVGC (Animation, Visual Effects, Gaming, and Comics) industry was a major focus this year. Kharge reaffirmed the government’s dedication to creating a startup ecosystem that is inclusive.

    Karnataka’s Deep Tech Park

    The state has been taking a number of steps to become the country’s startup leader. In the same line, Karnataka intends to construct a “Deep Tech” park to aid in the production of electronics, drones, electric vehicles, semiconductors, space technology, and the aerospace and defence sectors. The industrial hub would be built in the Chikballapur district of Karnataka, in Jangamakote. The area, which is expected to be called MV Deep Tech area, is roughly 60 km from Bengaluru. In addition, the state has launched the Karnataka Clean Mobility Policy 2025-30. This policy intends to draw INR 50,000 Cr in investment from the clean mobility value chain. Parallelly it will also construct a testing track and a state-of-the-art EV cluster with shared infrastructure to increase EV manufacturing. The state also plans to establish a Centre for Applied AI for Tech Solutions (CATS) with an investment of INR 50 Cr.

  • Silectric Semiconductor Manufacturing, Supported by Zoho, Would Invest INR 3,425 crore in Karnataka

    At Kochanahalli in Mysuru, Karnataka’s first electronics manufacturing cluster will get an investment of INR 3,425.60 crore from Silectric Semiconductor Manufacturing Pvt Ltd, which was founded by Zoho’s directors and would generate 460 jobs. Under the direction of Chief Minister Siddaramaiah, the 64th State High-Level Clearance Committee (SHLCC) cleared nine applications totalling INR 9,823 crore across the state’s industrial sectors, which are anticipated to create INR 5,605 in employment. “A significant milestone for the state is the first semiconductor project in the electronics manufacturing cluster at Kochanahalli, Mysuru,” Siddaramaiah stated.

    234 acres of land in Kochanahalli, close to Kadakola in Mysuru, have been set aside by the state government for semiconductor and electronics manufacturing cluster (EMC) facilities. Additionally, a new Electronics System Design and Manufacturing (ESDM) policy is being planned by Karnataka.

    State Selected 901 Acres of Land for Semiconductor Sector

    For the semiconductor industry, the state has designated 901 acres of land spread among four industrial clusters. Karnataka’s Information Technology and Biotechnology Minister Priyank Kharge had previously announced the identification of a 224.5-acre cluster in Hubballi near Belur-Kotur, 245.67 acres in Kochanahalli in Mysuru, 218.20 acres in the Vasanthanarasapura Industrial Area in Tumakuru, and 213.14 acres in Hosahalli in Bengaluru Rural. Kharge, however, voiced reservations about luring semiconductor companies. In reference to Centre favouritism, he stated that although the state government had secured investments totalling INR 70,000 crore in the sector after touring several nations, a single phone call from New Delhi would compel them to invest in Gujarat.

    Kharge’s worries had also been echoed by MB Patil, the State Minister for Large and Medium industries. According to Patil, a lot of businesses are investing in Gujarat since the Union government is providing 50% incentives on top of the 30% incentives provided by the state government, which means that businesses only have to pay 20% of the total cost. The state would be able to draw in investments in the semiconductor sector if Karnataka was given comparable incentives. “I have also brought this issue to the attention of the Union Minister of Heavy Industries, HD Kumaraswamy,” said Patil.

    Other Upcoming Key Projects in Karnataka

    Three new investments totalling INR 6,573.6 crore of the INR 9,823 crore in investments approved at the State High-Level Clearance Committee meeting have the potential to create 4,427 jobs: Sansera Engineering Limited (INR 2,150 crore investment, 3,500 jobs) at Harohalli; Silectric Semiconductor Manufacturing Private Limited (INR 3,425.6 crore investment, 460 jobs) in Mysuru; and DN Solutions India Private Limited (INR 998 crore investment, 467 jobs) at ITIR, Devanahalli. Furthermore, six investment proposals totalling INR 3,249.7 crore are now in the works and are anticipated to create 1,178 jobs.

    A study was requested in the meantime about businesses that purchased land from the Karnataka Industrial Areas Development Board (KIADB) but do not begin operations within the allotted time. “Where necessary, fines will be imposed on such companies,” Patil stated. In order to address the issue of giving farmers a portion of the income from by-products, Patil also instructed sugar companies to look at the methods used in Tamil Nadu and Maharashtra.

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  • NXP, a Semicon Enterprise, will Invest INR 8,400 crore in Karnataka’s R&D

    NXP, a Dutch design and semiconductor manufacturing business, plans to increase its research and development (R&D) expenditures in Bengaluru. Over the following five years, the corporation intends to invest a sizeable amount of INR 8,400 crores, or almost $1 billion, in the state.

    The news was made while Karnataka’s minister of large and medium-sized industries, MB Patil, was on a roadshow in the Netherlands to solicit investments for the state in advance of Invest Karnataka 2025, the state’s premier event.

    Karnataka a Preferred Destination for International R&D Centres

    In a discussion with the company’s executive director, Maurice Geraets, Patil highlighted Karnataka’s critical role in developing worldwide R&D capabilities. “Maurice Geraets, executive director of NXP, the third-largest semiconductor manufacturing and design business in Europe, and I had a productive meeting. Maurice revealed that over the next five years, our state will receive a sizable amount of NXP’s $1 billion R&D investment,” Patil wrote on X.

    There were also interactions with other international players during the roadshow. The Bengaluru Innovation Campus, which recently received an investment of INR 445 crore (€50 million), was the focus of the minister’s discussion with senior executives of Phillips.

    Inviting Phillips to Establish a Manufacturing Unit in Karnataka

    Philips should set up a manufacturing plant in Karnataka, Patil urged. While the state encouraged Signify, formerly Philips Lighting, to invest in Karnataka under the China plus one plan, the company showcased its projects in the state.

    According to a statement from the department, Heineken, a multinational beer and cider corporation, talked about policy changes meant to increase its manufacturing investments in Karnataka. Minister Patil emphasised that the purpose of the roadshow was to establish Karnataka as a top location for foreign investors by showcasing the state’s worldwide attractiveness in industries like advanced manufacturing, renewable energy, and semiconductors.

    China-Plus-One Strategy

    A strategy known as “China-Plus-One,” or simply “Plus One,” involves corporations diversifying their operations to other countries rather than solely investing in China.Western businesses have made significant investments in China over the past three decades, drawn by the country’s low labour and manufacturing costs as well as the enormous and expanding local consumer market.

    A blueprint for creating long-term, robust, collective supply networks was released in July 2022 by a consortium of 18 economies, including the US, India, and the EU. Steps to address supply chain vulnerabilities and dependencies were also included in the roadmap. One could consider this to be a component of the broader China-plus-one plan.

    As early as 2008, U.S. and Japanese officials and businesses were considering diversifying away from China. But China-plus-one only became popular as a different approach for MNCs at the close of the past decade, when trade tensions between the US and China were at their highest. The main causes include the recent decline in China’s cost advantage and the escalating geopolitical mistrust between China and the West.

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