The proposed EV and construction equipment testing facilities in Mandya are facing a 10-month delay in land allocation. The project, led by the Automotive Research Association of India, remains stalled due to political friction between the state government and the Union Ministry. This gridlock raises concerns about the state's ability to secure key industrial infrastructure and attract related investments.
The establishment of two key automotive testing facilities in Mandya, Karnataka—an Electric Vehicle (EV) Testing Centre and a Construction and Infrastructure Equipment (CIE) Testing Centre—is facing significant delays. Proposed by the Automotive Research Association of India (ARAI), these centers are designed to enhance vehicle safety, emissions, and technology standards. However, the project has been stalled for 10 months, primarily due to pending land allocation, which has become a point of contention between the central and state governments.
The delay stems from a political stalemate involving Union Heavy Industries Minister HD Kumaraswamy and the ruling state administration. While the Union Minister has flagged the inability to secure land as a major hurdle for the region's industrial growth, the state government has maintained that coordination requires specific inputs. Recently, Chief Minister D.K. Shivakumar challenged the Union Minister to identify the required land, stating that the state would facilitate the acquisition process if suitable sites are pinpointed.
This infrastructure project is significant for the state’s automotive ecosystem. Such testing facilities are essential for automotive manufacturers, as they provide critical R&D support for safety, performance, and compliance with national standards. For the regional economy, the project is seen as a way to create high-skill jobs and attract secondary manufacturing investments, similar to the industrial clusters seen in other states.
The primary risk for stakeholders in the automotive sector and the regional economy is the potential loss of this central government investment. With multiple states competing to attract high-value R&D infrastructure, the inability of local Karnataka leadership to resolve the deadlock could lead to the project being relocated elsewhere.
Investors and industry observers will be watching the next phase of communication between the central ministry and the state government. The key update to monitor will be whether specific land parcels are identified and cleared for acquisition, as this remains the primary bottleneck currently preventing the project from moving to the execution stage.