Land rate disparity shows skewed development in Karnataka

Farmers and property owners whose lands were acquired for industrial use were paid up to Rs 2 crore an acre in and around Bengaluru as compensation.

But the figure nosedived to as low as Rs 7 lakh an acre in other parts of the state, according to government data. Experts say this is the result of “skewed” economic development.

In the last three years, the state government has acquired 9,984.27 acres for industrial use - 5,252.32 acres for industrial areas and 4,641.35 acres for single-unit complexes - through the Karnataka Industrial Areas Development Board (KIADB).

No land was acquired in Chamarajanagar, Chikkamagaluru, Kodagu, Vijayapura, Uttara Kannada, Gadag and Bidar districts in the last three years.

Six acres of land acquired for an IT park last year in BK Palya and Singahalli villages in Bengaluru Urban fetched their owners Rs 2.1-2.2 crore per acre in compensation. Farmers who parted with 142 acres of land in Mylanahalli and Hunsekatte villages of Hassan got Rs 14 lakh per acre. In the Yarabanahalli village of Ballari, farmers got paid just Rs 6.5 lakh per acre for 16.75 acres. These acquisitions happened between July and December last year.

In several parts of the state, authorities are yet to fix the per-acre rate of compensation.

“This is not a natural phenomenon. It shows lopsided development with growth centres around Bengaluru,” Krishna Raj, professor at the Centre for Economic Studies and Policy in the Institute for Social and Economic Change, said.

Raj argues against the popular notion that the value of land depended on the location.

“In the case of the Bengaluru-Mysuru Infrastructure Corridor (BMIC), compensation was fixed only per acre without factoring in resources. Compensation should also depend on crops being grown, soil quality and the usage potential of the land. Also, how many family members are dependent on the land being acquired?” he said.

By 2025, the state government has estimated a requirement of 41,600 acres of land for industrial use.

It is proposed that the KIADB will acquire 20,000 acres in a phased manner. Industries Minister Murugesh Nirani has already announced that the government will create taluk and district level land banks to be showcased at the Invest Karnataka summit scheduled in November 2022.

“Compensation for land is driven by the prevailing guidance values,” former industries minister RV Deshpande said. “We need to create land banks and the government shouldn’t hesitate in identifying government lands that aren’t required for any other use.”

Check out DH's latest videos here: