Karnataka Government Establishes Massive Industrial Land Bank to Address Bengaluru's Land Shortage
For years, investors seeking to establish industries in and around Bengaluru have faced a critical challenge: an acute shortage of available land. This persistent issue has forced numerous companies to either revise their expansion plans or opt for neighboring states that offer ready land parcels and faster approval processes. However, the Karnataka state government now asserts that this situation is poised for a significant transformation with the creation of an extensive industrial land bank on the outskirts of the city.
Extensive Land Acquisition Across Bengaluru Districts
Between April 2023 and March 2024, the government has acquired a substantial 24,205 acres of land spread across Bengaluru Urban, Bengaluru Rural, and Bengaluru South districts to meet the escalating industrial demand. Additionally, the acquisition process for another 9,275 acres has been initiated, with preliminary notifications issued and final notifications anticipated shortly. In total, this initiative will result in farmers in these districts relinquishing more than 33,480 acres of fertile land surrounding the state capital.
Bengaluru Rural district accounts for the largest portion of this land bank, primarily due to its proximity to the city and enhanced connectivity to Kempegowda International Airport. Data from the Karnataka Industrial Area Development Board (KIADB) reveals that 18,614 acres have already been secured, with an additional 6,521 acres currently under process. Overall, Bengaluru Rural is set to contribute 25,135 acres to the total land bank, excluding 1,777 acres in Channarayapatna hobli in Devanahalli taluk, which was excluded following farmer protests.
Strategic Move to Enhance Karnataka's Competitiveness
The government emphasizes that this strategic move is designed to ensure Karnataka remains competitive with other states in attracting industrial investments. Dr. Mahesh M, CEO of KIADB, highlighted that while demand for industrial land near Bengaluru has consistently been high, the focus has shifted to address the city's congestion issues.
"We need to decongest Bengaluru, so the priority is the outskirts and neighboring districts," he explained. "We are not only acquiring land near Bengaluru but also in other parts including Dharwad, Belagavi, and Mysuru."
Officials maintain that establishing a comprehensive land bank could help reverse the trend of investors bypassing Karnataka due to land constraints and procedural delays. By assembling large, contiguous parcels around Bengaluru, the state anticipates regaining a competitive edge in attracting manufacturing and infrastructure projects.
Farmer Protests and Concerns Over Land Loss
Despite the government's intentions, the land acquisitions have sparked significant protests from farmers in areas such as Anekal, Bidadi, Dobbespet, and Doddaballapur. These farmers allege that their fertile fields are being forcefully acquired, raising concerns about agricultural sustainability and livelihoods.
Dr. Venkatesh KT, a farmer leader from Kumbarahalli village near Hesaraghatta, expressed dissatisfaction with the move, noting that the government is also acquiring land for housing projects in addition to industrial purposes.
"If the situation continues, all farmers near Bengaluru will lose their land. We must wait and see whether the government will import vegetables from China and other countries," Venkatesh remarked.
He further stated that resistance has intensified following the withdrawal of the Channarayapatna acquisition, urging farmers to unite in protecting their land from government acquisition.
This development underscores the delicate balance between industrial growth and agricultural preservation, as Karnataka strives to bolster its economic landscape while addressing the grievances of its farming community.
