The Karnataka government has issued a notification declaring 1,461.46 acres of the Peenya Industrial Area (Phases 1, 2, 3, and 4) as the Peenya Special Investment Region.

70% of property tax collected from the region will be utilised for infrastructure development and maintenance; 30% will be shared with the local body.

The Karnataka Industrial Areas Development Board (KIADB) will be the regional development authority and industrial township authority for the region. Local authorities will have no jurisdiction.

Peenya becomes the 18th special investment region in Karnataka. Industry bodies Karnataka Small Scale Industries Association (KASSIA) and Peenya Industries Association (PIA) have welcomed the notification.

The Peenya Industrial Area, established in the early 1970s, houses around 13,000 micro, small, and medium enterprises (MSMEs) along with several large- and medium-scale industries.

Industry bodies noted the region has faced infrastructure problems including pothole-ridden roads, ineffective garbage collection, water and drainage issues, dysfunctional street lights, and law and order issues.

Concerns remain: the 15-member regional development authority committee includes only two representatives from the industrial fraternity. Industry bodies have requested at least 50% representation from the industrial sector, noting that a township authority would have provided greater representation.