The Cabinet on Friday approved the development of as many as 12 islands, including a few river islands (Kudru) in coastal Karnataka to develop coastal Karnataka into a world-class tourist destination.

Briefing reporters about the meeting here, Deputy Chief Minister G. Parameshwara said the projects would be executed on a public-private partnership (PPP) model through a Design-Build-Finance-Transfer (DBFOT) mode. The lease period would be set at 30 months for statutory approvals and then 30 years including the construction period.

The projects were expected to generate revenue throughout the lease term with a minimum revenue share of 2% and an annual lease fee besides offering employment to local people.

From the development of two Kudrus, North and South, in the Phalguni (Gurupura) river in Mangaluru with an estimated investment of ₹125.43 crore, the government expects a total revenue of ₹77.94 crore during the 30-year lease period. While a 30-berth marina was proposed on the 30.42-acre North Kudru, 32 nature huts were proposed on the 17.28 acres of South Kudru. The government expects a total revenue of ₹145.87 crore from the development of seven islands spread over 59 acres and 31 guntas in Karwar, Bhatkal, and Ankola taluks of Uttara Kannada district, with a total investment of ₹307.71 crore.

In addition, three islands in Udupi district, Ayaba (3.9 acres), Dariya Bahadurgad (27 acres), and Malpe (8.2 acres) islands in Udupi district will be developed as eco-tourism destinations at a cost of ₹279.03 crore, with an estimated revenue-sharing income of ₹120 crore to the government.

Mangaluru Lighthouse

The Cabinet also approved tourism and hospitality infrastructure on 1.5 acres of land around the Mangaluru Lighthouse on a PPP model, with an estimated investment of ₹60.34 crore. The proposal includes the construction of 35 rooms (3-star and above), with an estimated income of ₹34.21 crore during the 30-year lease period.

A riverfront wellness resort would be developed on 16.5 acres of land at Kodikal, Mangaluru, with an investment of ₹73 crore. Tourism development featuring eco-friendly beachfront glamping, an ocean experience centre, and an expo zone would be developed with an investment of ₹53 crore on 4.97 acres of land at Thannirbhavi in Mangaluru. A resort, adventure, and entertainment zone with recreational facilities would be developed on 7.07 acres of land at Trasi-Maravanthe Beach in Udupi district.