The State Government took a well-considered decision earlier this week to abandon its plan of acquiring 1,777 acres of fertile land for a proposed defence and aerospace park near the international airport on the outskirts of Bengaluru.
The move provided relief to farmers who have fought a long and difficult battle to protect their livelihood. Their struggle was backed by many prominent scholars, scientists, artists, and public intellectuals.
The move is unlikely to have any major impact on Karnataka’s efforts to attract investors and its reputation as one of the most sought-after investment destinations in the country. However, the episode reemphasised the need for careful identification of lands to be acquired for industrial development, especially as the state strives to maintain the lead in the defence and aerospace sector while continuing to woo investors in other sectors as well.
Land acquisition is always a challenge. But why identify a fertile farmland for industrial purposes and push farmers to protest? No doubt, industrial development is essential to spur economic activities and generate employment, but it should not be at the cost of protecting farmers’ interests and ensuring food security. Even the government has often made that aspect clear.
Pushback from farmers near Devanahalli and the subsequent decision taken by the government could influence similar demands from farmers in other places. While it may pose a challenge for authorities, it also highlights the need for a more consultative approach, from the time of identifying land, to avoid any conflict with farmers.
As Karnataka makes great strides attracting investments, the demand for land will increase significantly. In the Global Investors Meet [GIM] held earlier this year under the leadership of Industries Minister MB Patil, the state secured commitments of approximately Rs 10.27 lakh crore, of which Rs 4.34 lakh crore have already been converted. The state is in the top position in the country in the defence and aviation industry, with 67% of all aircraft and helicopter manufacturing for defence services and 25% of India’s aircraft and spacecraft industries based in Karnataka.
The defence Public Sector Undertaking Hindustan Aeronautics Limited [HAL], being headquartered in Bengaluru, plays a pivotal role in providing a much-needed ecosystem and impetus for the growth in the sector. The presence of several DRDO facilities, multi-national firms, and many top-notch educational institutions also adds to the state’s advantage.
The State Government is now seeking the Union Government’s support for the establishment of defence corridors in South and North Karnataka regions. The government is of the view that the defence corridors will boost the “Make in India” mission and attract domestic and foreign investments.
While Bengaluru and the surrounding areas have emerged as a hub of defence manufacturing, the government’s push for a defence corridor in North Karnataka is a welcome move, as Belagavi, Hubbali-Dharwad, and Vijayapura districts have a vibrant defence manufacturing ecosystem.
At the same time, the government should also continue to make efforts to take big manufacturing industries to the less developed districts, including those in Kalyan Karnataka region, which are well-connected with air and rail routes.
Land acquisition in those districts may not be as difficult as it is in Bengaluru and its outskirts. Successive state governments have been making efforts to get investments to other regions in the state. During the GIM, 75% of investment commitments were for outside Bengaluru and 45% for North Karnataka. It will take a long time and sustained efforts to ensure the equitable development of all regions.
Though Karnataka is in the top position in IT/ITES, defence, and aerospace sectors, competing globally, it also faces competition from neighbouring Andhra Pradesh, Telangana, and Tamil Nadu, which also seek to draw investments.
Interestingly, the neighbouring Andhra Pradesh uses the availability of large tracts of dryland close to Kempe Gowda International Airport in Bengaluru for its tactical advantage. While inviting investments to his state, AP Minister Nara Lokesh had stated that they have “…over 8000 acres of ready-to-use land (just outside Bengaluru)!” On the other side, the Tamil Nadu government is also giving impetus for expanding industries in Hosur, around 50 km from Bengaluru and plans to build an international airport there.
As states compete to woo investors, economist and former chairman of Karnataka Agricultural Prices Commission Dr. TN Prakash Kammardi suggests the need for a comprehensive Land Acquisition and Use Policy for industries at the national level. A policy that is inclusive of all stakeholders. Kammardi, who was among the prominent people who backed the farmers’ protest, is of the view that industrial development must be confined to non-arable zones. Land should be given to them as per the requirement and not be disproportionate to the actual use for a productive purpose.
Striking a delicate balance between industrial development and protecting farmers’ interests is a challenge not just for Karnataka but for governments across the country. A transparent, consultative and inclusive approach could help build consensus among all stakeholders.