Bagalkot, March 15, 2026: Chief Minister Siddaramaiah announced on Saturday that the Karnataka government has set aside Rs 3,000 crore in the 2026-27 Budget specifically for land compensation under the third phase of the Upper Krishna Project (UKP Ph-III), while launching the distribution of compensation cheques to affected farmers.
Speaking after laying the foundation stone for the Bagalkot Medical College and Research Institute, the Chief Minister launched the compensation programme for lands acquired for UKP Phase III. He emphasised that the Congress government is giving equal priority to both welfare guarantee schemes and development projects, countering opposition claims of fund shortages.
“Our government has decided to provide compensation in one instalment to farmers who voluntarily give up their land,” Siddaramaiah said. “Rs 3,000 crore has been reserved in the budget for land compensation under UKP Phase III and additional grants will be arranged if required.”
The government has fixed compensation rates at Rs 40 lakh per acre for irrigated land and Rs 30 lakh per acre for dry land. As part of the launch, Rs 446 crore in compensation is being disbursed immediately for about 900 acres of land across eight villages coming under the project. The distribution of relief cheques to affected families has begun and will continue over the next three to four years.
The Chief Minister criticised the previous BJP government for not showing interest in compensating farmers for UKP land acquisition, which had discouraged voluntary participation. “The BJP never showed interest towards disbursing compensation for the land acquired for UKP and consequently, the farmers did not come forward to part with their lands,” he said.
He added that the Congress government is now fulfilling its promises, while accusing the Union government of delaying clearances for major irrigation projects including UKP.
Deputy Chief Minister D.K. Shivakumar, who also attended the event, noted ongoing challenges with inter-state issues involving Andhra Pradesh and Maharashtra regarding project approvals. The duo visited the Sri Jagadguru Siddarameshwar Mahasamsthana Bovi Guru Peetha in Bagalkot to seek blessings before the programme.
UKP Phase III involves raising the height of the Almatti Dam and acquiring over 1.33 lakh acres of land (including submerged and canal areas) to expand irrigation benefits to drought-prone regions in north Karnataka. The project has faced delays due to land acquisition hurdles, but the enhanced compensation package and budgetary provision aim to accelerate progress.
Siddaramaiah also highlighted steps to address regional imbalances in north Karnataka, including plans for medical colleges and trauma centres in every district. He paid tribute to former MLA H.Y. Meti for his role in establishing the Bagalkot medical college.
The announcement comes amid preparations for bypolls in Bagalkot and Davanagere, though the Chief Minister clarified that development works like the medical college foundation are not linked to elections.
Farmers and local leaders welcomed the move, hoping it will expedite project completion and provide timely relief to displaced families. The government has indicated that further funds beyond the initial Rs 3,000 crore will be released as needed to complete land acquisition smoothly.
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