Karnataka plans ₹307.71 crore island tourism project in Uttara Kannada
The state will develop seven islands using a public-private partnership model to boost tourism opportunities.
The Karnataka government has notified a ₹307.71-crore plan to develop seven islands off the Uttara Kannada coast. According to a report by Urban Acres, the projects are located in the Karwar, Bhatkal and Ankola taluks and will follow a Design, Build, Finance, Operate and Transfer structure.
The identified islands include Madhyalingad, Hog, Devgad, Mongeraguda, Kiri Kunda, Ankani Cheggudu and Kurumgad. Six of these are classified as greenfield islands, while Kurumgad is a brownfield island. The Karnataka Maritime Board will oversee the implementation of these projects.
Development will be based on carrying-capacity studies, environmental approvals and Integrated Island Management Plans. While the islands cover 135.04 acres, only 59.31 acres have been earmarked for development so far. The state will determine the extent of permissible tourism activity after further assessments.
The proposed investment varies by location, with Devgad receiving the highest indicative investment of ₹74.99 crore. Other investments include ₹59.99 crore for Hog, ₹45 crore for Madhyalingad, ₹39.76 crore for Kurumgad, ₹36 crore for Ankani Cheggudu, ₹27.98 crore for Mongeraguda and ₹23.99 crore for Kiri Kunda.
Initial estimates suggest the creation of 318 hotel keys and a daily carrying capacity of 2,606 tourists. Developers will be chosen through competitive bidding based on the highest revenue-sharing offers. Each concession will last for 30 years, with a possible 30-year extension.
The state anticipates receiving ₹8.70 crore in combined first-year concession fees. It also expects to earn approximately ₹145.87 crore in revenue through sharing over the duration of the concessions.