Karnataka shifts to voluntary land purchase, offers Rs 2.7 crore per acre for Aerospace Park

3 min readBengaluruUpdated: Jun 25, 2026 07:56 PM IST

Karnataka has proposed a record Rs 2.7 crore per acre compensation for farmers voluntarily selling land for the Aerospace and Defence Park near Bengaluru (File photo),

Nearly a year after the Karnataka government dropped its plans to acquire land for Phase 2 of the Aerospace and Defence Park following relentless local protests, the state has moved to a voluntary model backed by a historic compensation package.

The Land Price Determination Advisory Committee has officially recommended a record-breaking compensation of Rs 2.70 crore per acre to the Karnataka Industrial Areas Development Board (KIADB).

The payout applies to 120 acres of land spread across Gokarebacchenahalli and Hyadala villages within Channarayapatna Hobli in Devanahalli taluk, located adjacent to the Kempegowda International Airport. This offer is exclusively earmarked for landowners who have voluntarily stepped forward to sell their property for industrial expansion.

The decision was taken at a joint meeting of officials and landowners held at Aravinda Bhavan in Bengaluru on Wednesday. The recommendation will now be placed before the Karnataka Industrial Area Development Board for approval.

Why landowners prefer development rights

According to sources in the Industries Department, landowners who do not wish to receive monetary compensation can avail themselves of developed land. For every acre of agricultural land acquired, farmers can avail of 10,781 square feet of developed area (approximately 1/4 of an acre) in the industrial area, if they opt to.

Sources said many farmers are choosing to pursue development rights rather than accept the large compensation offered. “They have observed how farmers in neighbouring areas, whose land was acquired, have thrived. Some have even earned more than four times the value of their land by either constructing commercial buildings or converting their properties into warehouses,” said an official.

A notice issued by the Industries Department stated that farmers had voluntarily agreed to the acquisition of their land. A final notification was published under the KIADB Act on June 16. “The compensation offered is the highest ever in the Devanahalli region and demonstrates the government’s commitment to providing fair compensation to the affected farmers,” the notice said.

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Compensation will be provided for the acquisition of 120 acres of land in two villages of Channarayapatna Hobli. Last July, the Karnataka government cancelled the acquisition of 1,777 acres of farmland across 13 villages due to farmers’ protests that lasted over three years. Recently, some farmers approached KIADB and offered their land voluntarily.