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Industry leaders are fuming, and many feel that if Bengaluru does not get its act together, Karnataka’s capital may lose its Silicon City tag
Pai explained that the problem is that there is no execution on the ground, there is corruption, and officials don’t listen to the ministers. (File photo: PTI)
It seems like every two months, Andhra Pradesh gets an opportunity to make a pitch to Bengaluru-based IT companies to shift their operations out of the city, as companies post about being frustrated with the traffic, potholes, and infrastructure that needs attention and look for cities with better facilities.
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The latest pitch by Andhra Pradesh IT minister Nara Lokesh to a Bengaluru-based online trucking firm BlackBuck invited them to shift his company to Visakhapatnam after the co-founder and CEO Rajesh Yabaji announced on social media that he planned to move out due to “roads full of potholes & dust, coupled with lowest intent to get them rectified”.
Industry leaders are fuming, and many feel that if Bengaluru does not get its act together, Karnataka’s capital may lose its Silicon City tag.
IT industry leader and former Infosys CFO Mohandas Pai is a very upset man.
He told News18, “Bengaluru is losing its sheen, Bengaluru is losing its brand. Even an optimist like me, who is from Bengaluru, is losing hope. How do you think we feel about seeing such instances where companies are leaving Bengaluru? We have been working for the industry for the last 35 years, working to build the IT industry in Bengaluru. How do you think we feel now? The roads are a big mess. Look at the Outer Ring Road, where eight lakh people commute each day to work in IT clusters that are built over 93,000,000 sq ft of space. Nowhere in the world do you see something like that…”
Pai explained that the problem is that there is no execution on the ground, there is corruption, and officials don’t listen to the ministers. Ministers also make false promises, he claimed.
“It is a total failure of governance, a total failure of management,” he said, adding that he feels pained and helpless now.
Pai added that “the problem is that the minister makes promises but doesn’t seem to follow them up. The problem is they keep having interactions with citizens, but there is no monitoring and no reviews. Everybody is making statements. The deputy chief minister comes, gives a tea-time promise saying, ‘Within 15 days I will do it.’ Nothing happens, it just goes on and on.”
Speaking about how he saw a social media post by a senior politician saying that the road that was built one month back has already developed potholes, he asked, “How can a road built just one month ago have potholes? Roads are supposed to be designed for rain. Rain is a normal occurrence.”
Pai said that he had given suggestions to the government on how to resolve the issue and ensure investments continue to remain locked in Bengaluru.
“The deputy chief minister and chief minister should visit, go to one of those campuses, meet all the people there, make a list of things to do, and call the traffic commissioner and chart out a plan. Since you have five corporations, make the commissioners of these corporations sit down, write down the promises, set deadlines for completing everything, allocate the money and resources, and finish the work within four weeks so that people see an improvement.”
Urban experts explain that the real problem is that over the last three decades, Bengaluru has witnessed faster growth than any other peer city in the country. Keeping in view how the city has grown, the investments that came in, companies set up shop, and they also used the best working environment that Karnataka gave them. However, the fact also remains that there have been no city corporation elections for over five years, which has taken a toll on Bengaluru. At first, there were no dedicated city ministers who could address the issue of severe traffic congestion, potholed roads, and deteriorating infrastructure, including unfinished work like flyovers, metro connectivity, and public transport.
Once a Bengaluru urban development portfolio was created, IT companies saw hope. But that too failed as misgovernance continued. Money that was to be used for development never hit the ground literally, explained a startup founder whose office operates out of Manyata Tech Park in Bengaluru.
Another senior IT company C-suite officer who sought anonymity said, “The main reason behind this failure is the lack of commitment to making Bengaluru great. Time and again, when roads are a problem, the issue is addressed like bandages. IT companies ask, how much more do you want us to adjust? We are moving towards feeder buses, encouraging employees to use metro services, and the onus is on the government to give us roads—and smooth ones at that.”
“The decision of BlackBuck to move out of the ORR must serve as a serious wake-up call. Bengaluru’s reputation as India’s tech capital rests on infrastructure and ease of business. GBITCIA urges immediate action—a transparent roadmap on road repairs, public transport upgrades, and better urban governance. The industry stands ready to collaborate with government agencies to restore confidence and retain our world-class talent and companies,” said the Greater Bengaluru IT & Companies Association. “GBITCIA appreciates the interest shown by Andhra Pradesh IT Minister Nara Lokesh in inviting BlackBuck to Visakhapatnam. However, GBITCIA emphasises that Bengaluru remains the leading tech hub in India and highlights the urgent need for infrastructural reforms within the city itself.”
Krishna Kumar Gowda, general secretary of GBITCIA, said, “We recognise Andhra Pradesh’s efforts to attract IT investments, but Bengaluru’s unique ecosystem of talent, innovation, and business networks is unparalleled. We call on the Karnataka government to urgently address the infrastructure challenges outlined by firms like BlackBuck, including road safety and traffic congestion. GBITCIA is committed to working alongside government agencies to make Bengaluru a sustainable and attractive destination for all technology companies.”
The discontent coincides with several campaigns involving children writing postcards and poems to the PM, CM and deputy CM asking for better roads, as well as a viral video of schoolchildren on a jolting bus ride along a cratered city road, which reignited public anger over Bengaluru’s civic neglect.
Lokesh’s invitation has reignited the tussle between Karnataka and Andhra Pradesh over companies and investments.
“We are and will remain the silicon capital of the country. Karnataka and Bengaluru will continue to be the first choice for companies,” said a senior bureaucrat in the IT department. “Remember that old saying in a famous advertisement … Neighbour’s envy, owner’s pride.”
This is not the first time Andhra Pradesh and Karnataka have been at loggerheads.
Lokesh’s father, chief minister N Chandrababu Naidu, had earlier courted Hindustan Aeronautics Limited (HAL) by offering 10,000 acres in Anantapur’s Lepakshi-Madakasira belt, barely an hour’s drive from Bengaluru airport. The move triggered angry responses in Karnataka, with deputy chief minister DK Shivakumar declaring, “HAL is Karnataka’s pride. We won’t allow it to be moved elsewhere,” while stressing that the state had already set aside land for HAL in Tumakuru and Bengaluru.
On July 16, when the Karnataka government officially scrapped plans to acquire land for an aerospace park near Bengaluru’s Kempegowda International Airport, which almost borders Andhra Pradesh, following massive farmer protests, Nara Lokesh wasted no time in making a pitch.
This offer by the AP minister came just a day after Karnataka chief minister Siddaramaiah announced the cancellation of a 1,777-acre acquisition in Devanahalli taluk—a major win for protesting farmers. Siddaramaiah’s decision coincided with the 1,198th day of their continuous agitation against losing fertile land to the project.
After a meeting with officials and farmer groups on July 15, Siddaramaiah said the state had “completely shelved the forced land acquisition plan,” adding that land would now be taken only from willing sellers, with higher compensation and developed plots offered in return.
Lokesh had then posted on social media: “Dear Aerospace industry, sorry to hear about this … I have a better idea for you. Why don’t you look at Andhra Pradesh instead? We have an attractive aerospace policy for you, with best-in-class incentives and over 8,000 acres of ready-to-use land (just outside Bengaluru)! Hope to see you soon to talk across the table.”
Karnataka’s industries minister MB Patil also hit back at Lokesh’s “open invite” and declared that not a single company would leave Karnataka “for want of land”, as it was Karnataka’s working ecosystem that companies crave more than acreage.
“I wish Nara all the best,” Patil responded to the offer made by Lokesh to IT companies in the aerospace field.
Two months earlier, Lokesh had made a pitch about how Visakhapatnam is emerging as a suitable destination for the IT industry, saying the city has an amazing talent pool, great infrastructure, and land at subsidised prices that can attract further investments.
Lokesh, who has been wooing IT companies to Visakhapatnam, said that the capital of Andhra Pradesh was emerging as a suitable destination for the IT industry. Lokesh told CNN-News18 in an interview at the time that Visakhapatnam has an amazing talent pool, great infrastructure, and as a state, they are willing to give land at a very subsidised price. “I keep joking and telling people that if Goa were to marry Bengaluru and have a child, that could be Visakhapatnam,” he said.
He also drew comparisons and said he took inspiration from the well-known industrial playbook of Prime Minister Narendra Modi, who, as Gujarat chief minister, famously allotted land to Tata Motors in Sanand for 99 paise.
He said that Vizag, as it is fondly called, has an amazing talent pool, great infrastructure, and land at subsidised prices, which can attract further investments. He had just closed a deal with TCS, where the IT major got 21 acres of land for a development centre in Visakhapatnam for 99 paise.
“TCS is expected to create close to 12,000 IT jobs in Visakhapatnam, which is the IT capital of Andhra Pradesh. We are excited to have TCS set up in Visakhapatnam, and we are looking forward to inviting other larger IT players also to come down and set up shop in Visakhapatnam,” he said to News18.
About the Author
Rohini Swamy, Associate Editor at News18, has been a journalist for nearly two decades in the television and digital space. She covers south India for News18’s digital platform. She has previously worked with t…Read More
Rohini Swamy, Associate Editor at News18, has been a journalist for nearly two decades in the television and digital space. She covers south India for News18’s digital platform. She has previously worked with t… Read More
bengaluru, India, India
September 17, 2025, 22:13 IST
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