DEPUTY CHIEF MINISTER SUGGESTS MONETARY COMPENSATION AS LAND FOR REHABILITATION PROVES INADEQUATE AND COSTLY
The Karnataka government is seriously contemplating offering cash compensation instead of physical rehabilitation to families expected to be displaced by the third stage of the Upper Krishna Project (UKP-III). This shift in approach, articulated by Deputy Chief Minister and Water Resources Minister D.K. Shivakumar, signals a potential pivot away from traditional resettlement models amidst escalating land acquisition costs and complexities.

The core of this consideration lies in the escalating figures for land compensation, with some court-ordered payouts reaching astronomical sums. Recent reports indicate court directives demanding compensation in the range of ₹13 crore to ₹14 crore per acre in specific instances. This starkly contrasts with the government’s recently proposed compensation package, hovering around ₹30 lakh to ₹40 lakh per acre.

The government also faces hurdles in acquiring sufficient land for rehabilitation centers. A significant chunk of the 6,467 acres required for rehabilitation centers across 20 villages under UKP Phase-III remains in various stages of acquisition or legal dispute. Of this, while compensation for 3,392 acres has been agreed upon, 1,846 acres are tied up in court, and other parcels are in different stages of notification and acquisition processes. This logistical quagmire, coupled with the immense financial implications of court-mandated compensation, appears to be driving the government's search for alternative solutions.
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Shivakumar has also pointed fingers at what he terms "collusion" among government advocates, suggesting it contributes to the demand for inflated compensation rates in land acquisition and rehabilitation efforts for the project. An investigation into land compensation processes has been indicated by Shivakumar.

SHIFTING STRATEGIES AMIDST LEGAL BATTLES AND ACQUISITION WOES
The proposed shift comes at a time when the project, particularly its third phase, is facing protracted delays, partly attributed to ongoing litigation. Chief Minister Siddaramaiah has previously appealed to farmers to opt for consensual settlements to expedite the project, emphasizing that such agreements would prove more beneficial than prolonged legal battles. He had assured that the government would not act unjustly towards farmers and that compensation rates for both dry and irrigated land would be announced within a week, aiming for a "consent award" approach.
"Litigation will only delay UKP Stage-3," CM Siddaramaiah has stated, urging farmers towards consensual settlements.
The government has also finalized land compensation amounts for rapid project implementation. For canal construction under UKP Phase-3, the Cabinet resolved to offer ₹25 lakh per acre for dry land and ₹30 lakh per acre for irrigated land. This move, described as "historic," aims to accelerate the project’s progress.
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EXTERNAL OBJECTIONS AND ONGOING DISPUTES
Beyond internal challenges, Karnataka's efforts to advance the UKP-III are also encountering external objections. The government of Andhra Pradesh has raised opposition to Karnataka’s proposal to increase the height of the Almatti dam, a move intended to facilitate the project's completion. Shivakumar plans to travel to New Delhi to discuss this matter with central authorities.
BACKGROUND: THE UPPER KRISHNA PROJECT (UKP)
The Upper Krishna Project (UKP) is a major irrigation and hydroelectric power project aimed at utilizing the waters of the Krishna River in Karnataka. The project, spread across multiple phases, has historically been a significant undertaking, involving the acquisition of large tracts of land and the displacement of numerous communities.
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UKP Phase-III: This stage involves increasing the height of the Almatti dam and necessitates the submergence of substantial land areas, alongside land required for canal construction.
Land Acquisition: The project requires a vast amount of land, with estimates suggesting over 1,33,867 acres needed, of which a significant portion (51,837 acres) is for canal construction and 75,563 acres are projected to be submerged.
Compensation Disputes: Land acquisition for the project has been marked by ongoing disputes over compensation rates, leading to numerous court cases and delays. The disparity between market value, court-awarded sums, and government offers has been a recurring theme.
Rehabilitation Centers: The establishment of rehabilitation centers for displaced populations requires considerable land, the acquisition of which has also faced procedural and logistical challenges.