Karnataka to raise Rs 2000 cr by auctioning land

The Karnataka government plans to raise Rs 2,000 crore by auctioning 408 acres of land near the upcoming Bangalore International Airport in Devanahalli on the outskirts of the city.

A decision to this effect was taken by the State Cabinet which met here on Thursday.

"The land will be auctioned in parcels of 25-50 acres. We expect to raise Rs 2,000 crore to fund various projects," Karnataka medical education minister V S Acharya said after the meeting.

The government had acquired around 2,000 acres in Devanahalli for the airport. However, it handed over close to 1,600 acres to the Bangalore International Airport Ltd (BIAL) to execute the project and retained 408 acres.

The BIAL had repeatedly sought the transfer of 408 acres for its future expansion plans. However, the possibility of transferring land to BIAL appears doubtful with the government deciding to auction the same for market price.

The minister said that the government will announce guidelines for the activities to be taken up on the land by the buyers.

"The land is located in a prime locality. The auction will fetch us adequate resources to fund various projects," he added