The Union government has cleared the project for setting up a special economic zone (SEZ) at Hassan in Karnataka. Besides, Central approval has also been obtained for the Export Promotion Industrial Park (EPIP) project planned at Mangalore, and two food parks at Bagalkot and Malur.

The Hassan SEZ would be developed jointly by the Karnataka government and a private sector partner, for which global tenders would be floated soon. Meanwhile, Infrastructure Development Corporation of Karnataka is preparing a detailed project report (DPR) that is expected to be finalised by the end of September 2001. The Karnataka Industrial Area Development Board is expected to invite global tenders after the receipt of the DPR. Around 1,800 acres of land are already under possession, while plenty more is available for the project development. The government has already spent Rs.80 crore on developing the area.

For the Mangalore EPIP, the government has earmarked 200 acres of land. Global tenders are likely to be floated soon for the selection of the project developer.

The food parks, to be set up at Bagalkot and Malur, will be jointly promoted by Karnataka Industrial Areas Development Board (KIADB) and a private sector player, which would be selected through competitive bidding. The Central government would be partly funding the project.