Karnataka launches ₹20 crore applied AI centre to solidify deep-tech leadership.

New ₹20 crore Centre of Excellence uses public-private partnership to launch Karnataka’s deep-tech decade.

January 22, 2026

Karnataka launches ₹20 crore applied AI centre to solidify deep-tech leadership.
A major institutional push to solidify Karnataka's standing as India's premier technology hub is underway with the approved establishment of a state-of-the-art Centre for Applied AI for Tech Solutions, or CATS, in Bengaluru's HSR Layout. The initiative, sanctioned by the Karnataka government, represents a significant public-private investment, with a total outlay of ₹20 crore specifically earmarked for the development and commercialisation of deep-tech applications across critical industrial sectors. This new Centre of Excellence is poised to become a launchpad for next-generation innovation, focusing on the convergence of core technologies like artificial intelligence, robotics, and automation to drive digital transformation and Industry 4.0 adoption. The move underscores a concerted effort by the state to move beyond conventional IT services and cultivate a robust, product-centric, and deep-tech ecosystem within the state's capital.
The CATS Centre of Excellence is strategically planned as a collaborative venture, designed to pool resources and expertise from government, academia, and the private sector. The total ₹20 crore outlay for the centre is structured to be dispersed over a four-year period, utilising a tripartite funding model to ensure sustained backing and industry relevance. Under this model, the Ministry of Electronics and Information Technology (MeitY) and the Government of Karnataka will contribute 40 per cent each, while the remaining 20 per cent will be secured through commitments from industry partners. The Department of IT, Government of Karnataka, is spearheading the establishment of the centre, which will be housed within the existing KEONICS facility in HSR Layout, placing it in a key industrial and start-up district of Bengaluru. The operational partnership with Nasscom, the apex body for the IT industry, is intended to bridge the gap between academic research and commercial application, ensuring that the innovation fostered is directly applicable to market needs and has a clear path to commercialisation. The financial structure itself is a signal of the state's intent to share both the investment risk and the long-term rewards with private enterprises and the central government, thereby creating a shared stake in the centre's success.
The core mission of the CATS AI-CoE is centered on addressing high-priority areas critical to modern industry and national competitiveness. The focus areas, including AI, robotics and automation, supply chain optimisation, and digital transformation, have been selected to maximise the centre’s impact on the economy. By concentrating on these four pillars, the CoE aims to accelerate the integration of cyber-physical systems into manufacturing and service sectors, directly contributing to the state’s goal of widespread Industry 4.0 adoption. The robotics and automation segment will likely focus on developing advanced solutions for factory floors and logistics, a crucial step for boosting manufacturing efficiency and scale. Furthermore, the emphasis on supply chain optimisation is a direct response to global post-pandemic vulnerabilities, with AI-driven models expected to enhance resilience, predictability, and efficiency in large-scale logistics operations. The digital transformation mandate ensures that the centre’s output will also cater to modernising government services and other public-facing sectors, establishing AI as a tool for public good and improved governance.
A key objective of the new centre is to strengthen the entire innovation value chain in Karnataka, extending its benefits beyond large corporations to embrace the entrepreneurial and academic communities. The CATS AI-CoE is intended to serve as a hub for deep-tech start-ups and MSMEs, providing them with essential resources that are typically beyond the reach of early-stage companies. This includes the establishment of advanced laboratories and testing facilities, allowing for the rapid prototyping and validation of complex hardware and software solutions in a controlled environment. The centre will actively facilitate proof-of-concepts and foster collaborations between start-ups and established industry players, thereby creating a vital pipeline from pure research to market-ready innovation. The Minister for electronics and IT articulated this vision, stating that the CoE is a crucial element of the "Karnataka's deep tech decade," positioning it as a launchpad for collaborations that will propel the state's technological leadership. This emphasis on ecosystem development is designed to support the state's extensive network of over 25 Centres of Excellence, ensuring a faster adoption of AI across all verticals and incubators.
To ensure accountability and demonstrate tangible results, the CATS AI-CoE has committed to tracking a set of key performance indicators with year-wise growth targets. These measurable outcomes will include the total number of start-ups successfully incubated, the quantity of prototypes developed and demonstrated, the number of Intellectual Property (IP) filings originating from the centre, the scale of industry collaborations facilitated, and the sheer volume of professionals who are trained or reskilled in advanced AI technologies. This focus on clear, quantifiable metrics is designed to position the centre as a performance-driven entity rather than solely a research institution, making it a critical contributor to Karnataka's IT exports and its deep-tech talent pool. The successful execution of this mandate is expected to cement Bengaluru's reputation as a top global city for AI, capitalising on the state's existing strengths, such as its high share of deep-tech startups and its substantial contribution to India's engineering and research and development skill sets. Ultimately, the ₹20 crore investment in the HSR Layout Centre of Excellence is a strategic wager on the power of focused public-private partnership to sustain and accelerate India's AI revolution.[1]

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