- The Karnataka Cabinet has approved the establishment of a Centre of Excellence in Artificial Intelligence (CoE-AI) at the Indian Institute of Information Technology (IIIT), Raichur, with an outlay of ₹12 crore over five years, Minister for Home, Information Technology & Biotechnology, and e-Governance Priyank Kharge said on Sunday.
- The approval was granted at a Cabinet meeting chaired by Chief Minister D.K. Shivakumar under the Karnataka Government Transaction of Business Rules, 1977.
- The project will be funded through ₹5 crore earmarked in the 2026-27 State Budget and ₹7 crore under the LEAP programme.
- The AI Centre of Excellence will function as a regional hub for the 13 districts of North Karnataka, aiming to decentralise Karnataka’s technology ecosystem beyond Bengaluru by promoting AI education, research, innovation and entrepreneurship in Tier-2 and Tier-3 cities.
- The centre will develop AI-based solutions for key sectors, including agriculture, healthcare, education, MSMEs and governance.
- It will also establish AI development laboratories, advanced computing infrastructure, prototype development facilities, skill-development programmes, start-up incubation, innovation support and regional outreach initiatives.
- To oversee the project, the government will set up a Special Purpose Vehicle (SPV) named IIIT Raichur ARIA (AI Research & Innovation Arena).
- The initiative will be implemented in three phases, beginning with infrastructure creation and progressing towards innovation, entrepreneurship and long-term self-sustainability.
- Kharge said the project would position Raichur and the North Karnataka region as a major hub for artificial intelligence, creating world-class opportunities for students, researchers, startups and industry.
The Karnataka Cabinet has approved a ₹12-crore Centre of Excellence in Artificial Intelligence at the Indian Institute of Information Technology, Raichur, to be funded through ₹5 crore from the 2026-27 State Budget and ₹7 crore under the LEAP programme.139
The initiative aims to decentralize Karnataka's technology ecosystem beyond Bengaluru, serving as a regional hub for 13 districts in North Karnataka. It will promote AI education, research, innovation, and entrepreneurship in Tier-2 and Tier-3 cities.4
The centre will develop AI-based solutions for key sectors, including agriculture, healthcare, education, MSMEs, and governance. It will also establish AI development laboratories, advanced computing infrastructure, prototype development facilities, skill-development programmes, startup incubation, innovation support, and regional outreach initiatives.56

To oversee the project, a Special Purpose Vehicle (SPV) named IIIT Raichur ARIA (AI Research & Innovation Arena) will be set up. The initiative will be implemented in three phases, starting with infrastructure creation and progressing towards innovation and long-term self-sustainability.78
Minister Priyank Kharge stated that the project would position Raichur and North Karnataka as a major hub for artificial intelligence, creating world-class opportunities for students, researchers, startups, and industry.
“The centre will function as a regional hub for 13 districts, focusing on developing AI solutions for agriculture, healthcare, and education. It will be funded with ₹5 crore from the 2026-27 budget and ₹7 crore from the LEAP programme, and an SPV named IIIT Raichur ARIA will oversee the project.”
