South Indian state Karnataka, the hub of country's IT business, will soon have an integrated IT city in the vicinity of Bangalore International Airport near Devanahalli.

The state government has drawn up plans to develop an Information Technology Investment Region (ITIR), the IT city covering a geographical area of about 40 Sq Kms, near the airport region.

M N Vidyashankar, Principal Secretary in the IT department, said the government was taking necessary steps for initiating the tender process for selection of Master Developer for the ITIR project.

The proposed project would be completed in two phases, he said.

"In the 1st Phase, about 2000 acres of land would be acquired. The project would be developed on PPP mode. The ITIR project is expected to attract investment of over Rs one lakh crore, with potential employment of about three million", Vidyashankar said.

He said the IT exports from the state was likely to touch Rs one lakh crore in the current financial year. The state recorded IT exports of about Rs 85,000 crore during the financial Year 2010?11.

"IT in the state is growing at about 22 per cent and we hope to touch Rs 100,000 crore of IT exports during the current fiscal", he added.