The government has formed a high-powered committee to decide on Karnataka's proposal to set up an Information Technology Investment Region (ITIR) in Bangalore with an investment of Rs 90,000 crore.

The Committee, chaired by Cabinet Secretary Ajit Kumar Seth, is likely to meet on April 18 to consider granting in-principal approval to the project, which has already been cleared by the Department of Electronics and IT (DEITY).

Sources said the Karnataka government has proposed setting up of an ITIR in an area of 42.51 sq km with an estimated investment of Rs 90,000 crore in two phases.

Karnataka Industrial Areas Development Board (KIADB) has issued a preliminary notification for acquisition of 2,072 acres land for phase I of the project, they added.

Around 44 companies have shown interest, either in taking up land or building up space in the proposed project, sources said.

The project is expected to generate about 1.1 million direct and 2.7 million indirect jobs.

The investment includes IT parks, R&D centres, integrated townships and other infrastructure linkages. It would also include essential road connectivity during phase I and rail connectivity (metro) during phase II of the project.

The proposal envisages upgradation of the existing roads, national and state highways, water supply projects, power supply and bus rapid transport system among others.

The Karnataka government has sought Centre's support for the upgradation of infrastructure.

Sources said the state government has already written to various ministries for requisite permissions and most of them have broadly supported the proposal.

Issues raised by them have been responded by the Karnataka government, they added.

The Cabinet Committee on Economic Affairs had earlier approved a policy resolution to set up ITIRs in different states in the country to promote investment in IT/ITeS and electronic manufacturing.

As per the norms, the state government plays the lead role in setting up ITIRs. The infrastructure would be created through public private partnerships, while the gap funding is done by the Centre.

The DEITY is the nodal department to process the proposals relating to setting up of ITIRs. So far, the DEITY has received four proposals from the governments of Karnataka, Andhra Pradesh, Odisha and Tamil Nadu.