Earlier, Mysuru, Raichur, Hassan and Bengaluru were also pipped for the establishment of the prestigious institute in the state.
The Union HRD minister Smriti Irani has given her nod to set up an IIT in Dharwad and Karnataka Chief Minister Siddaramaiah has also been informed about it.
BJP MLA Aravind Bellad, who had been campaigning for long for an IIT in the twin cities Hubballi-Dharwad was quoted saying as, "We received an official communication from the ministry that Dharwad has been chosen over Raichur and Mysuru."
Some reports suggest that Dharwad had been chosen due to political and other reasons.
According to TOI report, Dharwad district administration has identified the required 500 acres near Mummigatti on the Pune-Bengaluru National Highway off Dharwad.
The setting up of an IIT in Dharwad would enhance job opportunities and also infrastructure growth.
The capital city Bengaluru is already a host to Indian Institute of Management Sciences and also an IISC.
Karnataka has been making a demand for an IIT to be set up in the state for long. In fact, it is a demand that has been on for almost 50 years.