diff --git a/exp/api/v1beta1/constants.go b/exp/api/v1beta1/constants.go
index 9232a32c..93830eae 100644
--- a/exp/api/v1beta1/constants.go
+++ b/exp/api/v1beta1/constants.go
@@ -18,5 +18,5 @@ package v1beta1
 
 const (
 	PodDefaultName = "pod"
-	PodDefaultCIDR = "10.0.4.0/24"
+	PodDefaultCIDR = "10.0.128.0/18"
 )
diff --git a/templates/cluster-template-managed-private.yaml b/templates/cluster-template-managed-private.yaml
index 6639c065..605baa53 100644
--- a/templates/cluster-template-managed-private.yaml
+++ b/templates/cluster-template-managed-private.yaml
@@ -27,23 +27,301 @@ spec:
   compartmentId: "${OCI_COMPARTMENT_ID}"
   networkSpec:
     vcn:
+      cidr: 10.0.0.0/16
       subnets:
-        - cidr: 10.0.0.0/30
+        - cidr: 10.0.0.8/29
           name: control-plane-endpoint
           role: control-plane-endpoint
           type: private
-        - cidr: 10.0.2.0/24
+        - cidr: 10.0.0.32/27
           name: service-lb
           role: service-lb
           type: public
-        - cidr: 10.0.1.0/24
+        - cidr: 10.0.64.0/20
           name: worker
           role: worker
           type: private
-        - cidr: 10.0.4.0/24
+        - cidr: 10.0.128.0/18
           name: pod
           role: pod
           type: private
+      networkSecurityGroups:
+        - egressRules:
+            - egressRule:
+                description: Allow Kubernetes API endpoint to communicate with OKE.
+                destinationType: SERVICE_CIDR_BLOCK
+                isStateless: false
+                protocol: "6"
+            - egressRule:
+                description: Path Discovery.
+                destinationType: SERVICE_CIDR_BLOCK
+                icmpOptions:
+                  code: 4
+                  type: 3
+                isStateless: false
+                protocol: "1"
+            - egressRule:
+                description: Allow Kubernetes API endpoint to communicate with worker
+                  nodes.
+                destination: 10.0.64.0/20
+                destinationType: CIDR_BLOCK
+                isStateless: false
+                protocol: "6"
+                tcpOptions:
+                  destinationPortRange:
+                    max: 10250
+                    min: 10250
+            - egressRule:
+                description: Path Discovery.
+                destination: 10.0.64.0/20
+                destinationType: CIDR_BLOCK
+                icmpOptions:
+                  code: 4
+                  type: 3
+                isStateless: false
+                protocol: "1"
+            - egressRule:
+                description: Allow Kubernetes API endpoint to communicate with pods (when
+                  using VCN-native pod networking).
+                destination: 10.0.128.0/18
+                destinationType: CIDR_BLOCK
+                isStateless: false
+                protocol: all
+          ingressRules:
+            - ingressRule:
+                description: Kubernetes worker to Kubernetes API endpoint communication.
+                isStateless: false
+                protocol: "6"
+                source: 10.0.64.0/20
+                sourceType: CIDR_BLOCK
+                tcpOptions:
+                  destinationPortRange:
+                    max: 6443
+                    min: 6443
+            - ingressRule:
+                description: Kubernetes worker to Kubernetes API endpoint communication.
+                isStateless: false
+                protocol: "6"
+                source: 10.0.64.0/20
+                sourceType: CIDR_BLOCK
+                tcpOptions:
+                  destinationPortRange:
+                    max: 12250
+                    min: 12250
+            - ingressRule:
+                description: Path Discovery.
+                icmpOptions:
+                  code: 4
+                  type: 3
+                isStateless: false
+                protocol: "1"
+                source: 10.0.64.0/20
+                sourceType: CIDR_BLOCK
+            - ingressRule:
+                description: Pod to Kubernetes API endpoint communication (when using
+                  VCN-native pod networking).
+                isStateless: false
+                protocol: "6"
+                source: 10.0.128.0/18
+                sourceType: CIDR_BLOCK
+                tcpOptions:
+                  destinationPortRange:
+                    max: 6443
+                    min: 6443
+            - ingressRule:
+                description: Pod to Kubernetes API endpoint communication (when using
+                  VCN-native pod networking).
+                isStateless: false
+                protocol: "6"
+                source: 10.0.128.0/18
+                sourceType: CIDR_BLOCK
+                tcpOptions:
+                  destinationPortRange:
+                    max: 12250
+                    min: 12250
+            - ingressRule:
+                description: External access to Kubernetes API endpoint.
+                isStateless: false
+                protocol: "6"
+                source: 0.0.0.0/0
+                sourceType: CIDR_BLOCK
+                tcpOptions:
+                  destinationPortRange:
+                    max: 6443
+                    min: 6443
+          name: control-plane-endpoint
+          role: control-plane-endpoint
+        - egressRules:
+            - egressRule:
+                description: Allow worker nodes to communicate with OKE.
+                destinationType: SERVICE_CIDR_BLOCK
+                isStateless: false
+                protocol: "6"
+            - egressRule:
+                description: Allow worker nodes to access pods.
+                destination: 10.0.128.0/18
+                destinationType: CIDR_BLOCK
+                isStateless: false
+                protocol: all
+            - egressRule:
+                description: Path Discovery.
+                destination: 0.0.0.0/0
+                destinationType: CIDR_BLOCK
+                icmpOptions:
+                  code: 4
+                  type: 3
+                isStateless: false
+                protocol: "1"
+            - egressRule:
+                description: Kubernetes worker to Kubernetes API endpoint communication.
+                destination: 10.0.0.8/29
+                destinationType: CIDR_BLOCK
+                isStateless: false
+                protocol: "6"
+                tcpOptions:
+                  destinationPortRange:
+                    max: 6443
+                    min: 6443
+            - egressRule:
+                description: Kubernetes worker to Kubernetes API endpoint communication.
+                destination: 10.0.0.8/29
+                destinationType: CIDR_BLOCK
+                isStateless: false
+                protocol: "6"
+                tcpOptions:
+                  destinationPortRange:
+                    max: 12250
+                    min: 12250
+          ingressRules:
+            - ingressRule:
+                description: Allow Kubernetes API endpoint to communicate with worker
+                  nodes.
+                isStateless: false
+                protocol: "6"
+                source: 10.0.0.8/29
+                sourceType: CIDR_BLOCK
+                tcpOptions:
+                  destinationPortRange:
+                    max: 10250
+                    min: 10250
+            - ingressRule:
+                description: Path Discovery.
+                icmpOptions:
+                  code: 4
+                  type: 3
+                isStateless: false
+                protocol: "1"
+                source: 0.0.0.0/0
+                sourceType: CIDR_BLOCK
+            - ingressRule:
+                description: Load Balancer to Worker nodes node ports.
+                isStateless: false
+                protocol: "6"
+                source: 10.0.0.32/27
+                sourceType: CIDR_BLOCK
+                tcpOptions:
+                  destinationPortRange:
+                    max: 32767
+                    min: 30000
+          name: worker
+          role: worker
+        - egressRules:
+            - egressRule:
+                description: Load Balancer to Worker nodes node ports.
+                destination: 10.0.64.0/20
+                destinationType: CIDR_BLOCK
+                isStateless: false
+                protocol: "6"
+                tcpOptions:
+                  destinationPortRange:
+                    max: 32767
+                    min: 30000
+          ingressRules:
+            - ingressRule:
+                description: Accept http traffic on port 80
+                isStateless: false
+                protocol: "6"
+                source: 0.0.0.0/0
+                sourceType: CIDR_BLOCK
+                tcpOptions:
+                  destinationPortRange:
+                    max: 80
+                    min: 80
+            - ingressRule:
+                description: Accept https traffic on port 443
+                isStateless: false
+                protocol: "6"
+                source: 0.0.0.0/0
+                sourceType: CIDR_BLOCK
+                tcpOptions:
+                  destinationPortRange:
+                    max: 443
+                    min: 443
+          name: service-lb
+          role: service-lb
+        - egressRules:
+            - egressRule:
+                description: Allow worker nodes to communicate with OCI Services.
+                destinationType: SERVICE_CIDR_BLOCK
+                isStateless: false
+                protocol: "6"
+            - egressRule:
+                description: Path Discovery.
+                destinationType: SERVICE_CIDR_BLOCK
+                icmpOptions:
+                  code: 4
+                  type: 3
+                isStateless: false
+                protocol: "1"
+            - egressRule:
+                description: Allow pods to communicate with other pods.
+                destination: 10.0.128.0/18
+                destinationType: CIDR_BLOCK
+                isStateless: false
+                protocol: all
+            - egressRule:
+                description: Pod to Kubernetes API endpoint communication (when using
+                  VCN-native pod networking).
+                destination: 10.0.0.8/29
+                destinationType: CIDR_BLOCK
+                isStateless: false
+                protocol: "6"
+                tcpOptions:
+                  destinationPortRange:
+                    max: 6443
+                    min: 6443
+            - egressRule:
+                description: Pod to Kubernetes API endpoint communication (when using
+                  VCN-native pod networking).
+                destination: 10.0.0.8/29
+                destinationType: CIDR_BLOCK
+                isStateless: false
+                protocol: "6"
+                tcpOptions:
+                  destinationPortRange:
+                    max: 12250
+                    min: 12250
+          ingressRules:
+            - ingressRule:
+                description: Allow worker nodes to access pods.
+                isStateless: false
+                protocol: all
+                source: 10.0.64.0/20
+                sourceType: CIDR_BLOCK
+            - ingressRule:
+                description: Allow Kubernetes API endpoint to communicate with pods.
+                isStateless: false
+                protocol: all
+                source: 10.0.0.8/29
+                sourceType: CIDR_BLOCK
+            - ingressRule:
+                description: Allow pods to communicate with other pods.
+                isStateless: false
+                protocol: all
+                source: 10.0.128.0/18
+                sourceType: CIDR_BLOCK
+          name: pod
+          role: pod
 ---
 kind: OCIManagedControlPlane
 apiVersion: infrastructure.cluster.x-k8s.io/v1beta1