The Karnataka Cabinet, chaired by Chief Minister Siddaramaiah, approved a series of transformative initiatives on Thursday, including a Centre of Excellence (CoE) for Space Technology, the Local Economy Accelerator Programme (LEAP), and significant health infrastructure projects, announced Law and Parliamentary Affairs Minister H K Patil.
The SpaceTech CoE, to be established as a Section 8 company under the Companies Act, 2013, with the Satellite Communication Industry Association (SIA-India) as the industry partner, will receive Rs 10 crore over five years. Exempted under Section 4(g) of the Karnataka Transparency in Public Procurements Act, 1999, the CoE aims to address the shortage of testing infrastructure for Karnataka’s burgeoning space sector, which produces around 30 working prototypes monthly from startups. “With ISRO and DRDO facilities at capacity, this CoE will support independent testing and innovation,” Patil said, aligning with the state’s Space Technology Policy (2024-2029) targeting $3 billion in investments and 500 startups.
The Local Economy Accelerator Programme (LEAP), allocated Rs 1,000 crore over five years with Rs 200 crore for 2025-26, will bolster startups across Karnataka, reinforcing its status as India’s innovation hub. The program extends support beyond Bengaluru to cities like Mysuru and Hubballi, complementing the Karnataka Startup Policy 2022-27.
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In healthcare, the cabinet approved a Rs 50 crore Kidwai Peripheral Cancer Treatment Unit in Raichur (Rs 20 crore for civil works, Rs 30 crore for equipment) and Rs 62 crore for medical equipment and furniture for a 450-bed hospital at the Indira Gandhi Institute of Child Health in Bengaluru. These projects aim to enhance specialized healthcare access, building on the state’s recent expansion of paramedical seats.
The cabinet also greenlit amendments to the Karnataka Global Capability Centre (GCC) Policy 2024-29 for clarity, without altering core objectives, supporting the state’s goal to attract Rs 5,000 crore in GCC investments and create 3.5 lakh jobs. Additionally, amendments to Acts governing seven development authorities, including Kudalasangama and Nadaprabhu Kempegowda, were approved, appointing the Revenue Minister as chairperson. The Karnataka Private Medical Establishments (Amendment) Bill, 2025, was proposed to regulate private ambulance services and mandate permanent registration for mobile medical units within 30 days.
A 1% fire cess on new multi-storeyed buildings was introduced to enhance fire department efficiency, sparking mixed reactions on X, with some users supporting infrastructure upgrades and others questioning added taxes. These decisions align with Karnataka’s Budget 2025-26, emphasizing AI, deep tech, and inclusive growth.
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