Mint Explainer Will Karnataka's AI City Succeed Where India's Smart Cities Faltered?

(MENAFN- Live Mint)

The Karnataka government is planning to develop the Greater Bengaluru Integrated Township (GBIT) on the outskirts of Bengaluru city, an ambitious project that revives memories of Navi Mumbai and Gurugram, satellite townships of Mumbai and Delhi, respectively.

What sets it apart, though, is the claim of becoming India's first and largest township powered by artificial intelligence (AI). GBIT is envisioned as a“work-live-play" city of the future. The government has set aside a substantial sum of money for land, infrastructure, and development. But what role will AI play here, and how will it be any different from the“smart city" projects India once championed, or even the Karnataka government's KWIN and SWIFT city projects announced in 2024?

What's the new project all about?

In a bid to ease Bengaluru's worsening congestion and creaking infrastructure, the Karnataka government plans to build the country's first AI-powered integrated city at Bidadi, 30 kilometres (km) from the state capital.

Deputy chief minister D.K. Shivakumar said GBIT will be completed within three years. Spread across 9,000 acres, it is envisioned as the city's second Central Business District and a global hub for AI-led industries under a“work-live-play" model.

To overcome land acquisition hurdles, the government plans to make farmers and landowners partners in the ₹20,000 crore project, offering annuities of ₹30,000-50,000 per acre annually until compensation or developed plots are handed over.

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Planned as a hub for startups, entrepreneurs, and AI-driven workspaces, GBIT is being pitched as India's first AI-powered township-distinct from Navi Mumbai or Gurugram. The government hopes to position it as a future-ready city where AI optimizes transport, energy, and civic services.

“Bengaluru has shown the world what it can do in information technology; now we will lead in AI," Shivakumar declared.

What about the state government's KWIN and SWIFT city projects?

Last September, chief minister Siddaramaiah launched Karnataka's 5,800-acre Knowledge, Wellbeing, and Innovation (KWIN) City, earlier called KHIR City. The first 2,000-acre phase, he said, would be developed in a public-private partnership within three years.

On 14 December, industries minister M.B. Patil unveiled plans for Startups, Workspaces, Innovation, Finance, and Technology (SWIFT) City in Sarjapura-touted as Karnataka's third major industrial hub after Electronic City and International Tech Park Ltd (ITPL). As the name suggests, SWIFT City will reserve over 1,000 acres in the Sarjapura Industrial Area for new-age businesses. With KWIN and SWIFT works in progress, critics argue the government should prioritize fixing Bengaluru's crumbling infrastructure instead of announcing yet another acronym-heavy project like GBIT.

What role is AI expected to play in GBIT?

While details remain sketchy, the government says GBIT will deploy AI, digital twin technology (a real-time virtual replica of the city), and smart sensors to manage traffic, waste, energy, and water. Algorithms could predict congestion and optimize power use, while AI may streamline waste collection, water management, and road maintenance. Predictive governance could anticipate shortages, health emergencies, or even crime, with chatbots easing citizen services and dashboards giving officials real-time oversight.

In theory, this promises quicker responses and more efficient governance. But questions linger: Will residents trust algorithms with daily decisions, and how will data privacy be protected in such a surveillance-heavy system? The success of GBIT hinges not only on smoother services but on whether governance remains transparent and citizen-first, or tips toward efficiency at the expense of individual rights.

Will GBIT avoid the pitfalls of India's“smart city" initiatives?

A decade after launching the Smart Cities Mission, the Centre officially wound it up this March. Of the 8,067 projects worth ₹1.64 trillion, 94%-valued at ₹1.51 trillion-have been completed, while another 512 projects are in advanced stages, according to a government press release on 24 June.

Nearly the entire budget of ₹47,652 crore has been released, and all 100 cities now have Integrated Command and Control Centres using AI and the Internet of Things (IoT), alongside thousands of smart roads, classrooms, health centres, and public spaces, the release adds. Yet, despite the numbers, most smart cities suffer from fragmented execution, poor coordination, and limited real-world impact.

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GBIT's advocates argue that, unlike retrofitting dozens of brownfield cities, a single greenfield township allows AI and infrastructure to be embedded from the ground up. Critics, however, warn that without strong accountability and long-term governance, Bidadi too risks becoming another half-finished showcase rather than a functional city.

Are there global models of AI-powered townships that Karnataka can learn from?

Other than India's own“smart cities", Songdo in South Korea shows that embedding technology is possible, but creating a community requires affordability and organic growth. Virtual Singapore demonstrates the value of a digital twin to simulate urban planning before execution. NEOM in Saudi Arabia highlights the risks of overambition, with delays and governance challenges tempering futuristic promises. Masdar in Abu Dhabi stresses phased, realistic deployment of sustainable technologies, while Barcelona's citizen-first model underscores transparency and public participation to avoid surveillance concerns. Bidadi, too, will have to balance AI-led efficiency with affordability, sustainability, and citizen trust to create a truly liveable city.

How much does it cost to build an AI-powered township?

The price tag for an AI-driven city is massive, because most of the expense lies not in the algorithms but in the physical infrastructure-land, housing, utilities, and transport-onto which AI systems are layered.

The Karnataka government has earmarked over ₹20,000 crore for land acquisition, infrastructure, and development, but experts point out that building a truly integrated township could cost much more.

Global examples demonstrate the scale and cost escalation. Songdo in South Korea, one of the world's earliest 'smart cities', cost an estimated $35-40 billion over two decades. The cost of Saudi Arabia's futuristic NEOM project, designed with AI at its core, ballooned to more than $500 billion. A Wall Street Journal report pegged NEOM's cost shooting up to a staggering $8.8 trillion, which is more than 25X Saudi Arabia's annual budget. Even Virtual Singapore, a digital twin for planning, cost $73 million just to model the city.

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Experts caution that the eventual bill for the Karnataka government will likely be higher than its earmarked $2.4 billion allocation once private investment in housing, offices, and AI applications is factored in, potentially pushing costs into the tens of billions over time.

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