Bengaluru: In a major development, the state Cabinet on Thursday accorded administrative approval for the creation of Greater Bengaluru Integrated Township in Bidadi, empowering the Greater Bengaluru Development Authority (GBDA) to take over more than 7,000 acres of land for the mixed-use township.
The Cabinet approval paves the way for critical formalities such as issuing of final notification and distribution of compensation that are prerequisite to start the groundwork.
Briefing reporters after the Cabinet meeting, Law and Parliamentary Affairs Minister HK Patil said the government has approved the acquisition of 7,481 acres spread across nine villages of Ramanagara taluk in Bangalore South district.
The project, estimated to cost Rs 18,104 crore, is being spearheaded by Deputy Chief Minister DK Shivakumar, who holds the Bangalore Development portfolio, even as his arch political rival and Union Minister HD Kumaraswamy has been strongly opposing the acquisition of "fertile" farmland.
A part of the township has been earmarked for the development of an 'AI city'.
While the project will be implemented by the GBDA, the Bangalore Development Authority (BDA) has extended a sum of Rs 2,000 crore as seed fund. Shivakumar's brother and former MP, DK Suresh, is a member of the GBDA, which is a new entity that reports to the Bangalore Metropolitan Region Development Authority (BMRDA) and Deputy CM Shivakumar.
The project is seen as an attempt to decongest Bengaluru by building a new satellite town. It may also help in directing development activities, which are currently concentrated in east and northern parts of the city, towards South Bengaluru.
In March 2025, the GBDA issued preliminary notification for the project, which is spread across villages such as Byramangala, Bannigiri, Vaderahalli, Kanchuganahalli, Kempayyanapalya, Mandalahalli and Aralalusandra among others. Within two years, the authority completed the cumbersome exercise of measuring every property, assessing existing structures and marking boundaries for disbursing compensation.
On an average, the authority plans to provide Rs 2 crore to Rs 2.5 crore per acre of land as compensation or 40% of the relinquished land as developed sites. It is raising a loan of Rs 20,000 crore from the Housing and Urban Development Corporation (HUDCO).