Published On:September 17 2025
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Historic Move: Karnataka Government Approves Major Compensation Hike for UKP Land Acquisition.
In a major relief for landowners, the Karnataka government has significantly increased the compensation package for land being acquired for the Phase-3 of the Upper Krishna Project (UKP). The new rates will see some landowners receive as much as ₹40 lakh per acre.
The Upper Krishna Project is a critical initiative aimed at providing irrigation to drought-prone districts in northern Karnataka, including Kalaburagi, Yadgir, Raichur, Vijayapura, and Bagalkot. The project requires the acquisition of a vast 1.33 lakh acres of land.
Deputy Chief Minister D.K. Shivakumar, who also holds the irrigation portfolio, announced the revised compensation structure on Tuesday. Under the new scheme, owners of irrigated land will be compensated at ₹40 lakh per acre, while those with arid land will receive ₹30 lakh per acre. Land acquired for canal construction will be compensated at ₹25 lakh per acre.
This new compensation is a substantial increase from the rates set by the previous government, which had offered ₹24 lakh per acre for irrigated land and ₹20 lakh per acre for arid land. The project's land requirements include 75,563 acres for submersion, 51,837 acres for canals, and 6,467 acres for rehabilitation purposes.