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No scope for additional compensation as demanded by farmers: MB Patil

No scope for additional compensation as demanded by farmers: MB Patil

Hans India13-08-2025
Bengaluru: Rajashree Cements, which in 2010 was granted approval to purchase 573 acres for establishing a cement plant and 398.23 acres for mining in Sedam taluk of Kalaburagi district directly from farmers, has already settled the matter through private agreements. Therefore, the present demand for additional compensation from the affected farmers is not justified, and the government has no role in this matter, stated Large and Medium Industries Minister MB Patil on Tuesday.
Replying to a starred question raised by Legislative Council Member Dr Talawar Sabanna, Patil said, 'Rajashree Cements had sought land in Hanghanahalli, Udagi, Huda (B) and Nripatunga Nagar in Sedam taluk. Considering the request, the government, under the Karnataka Land Reforms Act, 1961, granted approval on 27 November 2010 and again on 25 January 2011.
Subsequently, the company entered into direct agreements with farmers for the purchase of land. At that time, the prevailing rate was ₹70,000 per acre, but the company paid ₹3.5 lakh per acre as compensation for 921 acres purchased.'
'At that stage, the affected farmers demanded employment for one member from each family in the proposed factory. Instead of providing jobs, the company paid an additional ₹2.75 lakh per acre. Even after this, some farmers pressed for more compensation. The company then paid all affected farmers an extra ₹1.75 lakh per acre. In total, each acre has been given ₹8 lakh as compensation,' Patil explained.
Since the agreement was solely between the company and the farmers, the provisions of the Karnataka Land Reforms Act, 1961, do not apply in this case. As of March this year, the company has employed 1,345 local residents, accounting for more than 80 per cent of its total workforce, the minister added.
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