Karnataka island tourism and port development could receive a major private investment push, with the state government preparing proposals worth ₹7,697.48 crore for a multipurpose port at Manki in Uttara Kannada, 11 coastal islands and the Mangaluru lighthouse area. The proposals are expected to be considered at the state Cabinet meeting in Mangaluru on Friday, according to a report by Prajavani.
The infrastructure development, ports and inland water transport department has included the projects in the agenda prepared for the meeting. The proposals have not yet received Cabinet approval, and the report describes approval as possible rather than confirmed.
The largest project involves developing Manki port in Uttara Kannada at an estimated cost of ₹6,925 crore. The proposal is to convert it into a multipurpose port and shipbuilding yard through a design, build, operate, finance and transfer, or DBOFT, model. Under the proposed structure, a private entity would be responsible for the project’s design, construction, investment and operation before transfer arrangements are completed.
The state has also proposed developing 11 islands across three coastal districts at a combined cost of ₹712.17 crore. The reported allocation includes ₹125.43 crore for islands in the Gurupura river in Mangaluru, ₹307.71 crore for seven islands in Bhatkal and Ankola in Uttara Kannada, and ₹279.03 crore for Aiba, Darya Bahadurghad and Malpe islands in Udupi.
The island projects are also proposed under the DBOFT model. The department’s agenda describes the intended outcome as developing the islands and port-linked sites into global-standard, environmentally friendly tourist destinations. However, the report does not provide details on the proposed concession periods, environmental clearances, land arrangements, carrying-capacity assessments, access infrastructure or safeguards for local communities and coastal ecosystems.
A separate proposal concerns the Mangaluru lighthouse area, which is to be developed at an estimated cost of ₹60.34 crore under the same model. Taken together, the projects would place ports, islands and a lighthouse precinct within a single framework of tourism-led coastal development and private participation.
The proposal reflects the state government’s stated interest in using coastal tourism to create employment. Chief Minister D.K. Shivakumar has previously argued that the coastline offers significant opportunities for tourism development and job creation. The current agenda, as reported, seeks to translate that position into a set of infrastructure and destination-development projects.
For coastal residents, the immediate question is not only whether the Cabinet approves the proposals, but also how the projects will be structured and implemented. The available report does not specify the planned facilities on the islands, the expected visitor capacity, the financing terms or the agencies responsible for monitoring private operators. Those details would determine how the proposed investments affect mobility, livelihoods, public access and environmental management.
The Cabinet meeting is expected to consider the Manki port, island-development and lighthouse proposals along with other development projects. Any approval and the terms attached to it would establish the next stage for preparing detailed project reports, selecting private partners and obtaining the permissions required for construction and operations.

