Bengaluru AI city land acquisition: ₹30K–50K per acre annuity for thousands of farmers
The government introduces a Rehabilitation & Resettlement framework aligned with the 2013 Land Acquisition Act.
Nearly 7,431 acres across nine villages have been officially notified for India’s first AI City, marking a major step in the state government’s vision to transform Bengaluru into a global AI hub.

The land acquisition impacts 5,963 farmers, combining both private and government-owned plots, and includes 950 acres of lakes and green spaces that will be preserved within the township.
Sharing the blueprint on X, Karnataka Deputy Chief Minister, DK Shivakumar, highlighted the project’s scale and farmer-centric approach, promising a “locals first” policy and extensive rehabilitation for those affected.
(Also Read: Bengaluru to get India’s first AI city at Bidadi: Jobs, plans and all you need to know)
Farmer and landowner benefits
The government has outlined a comprehensive Rehabilitation & Resettlement (R&R) framework, to be aligned with the 2013 Land Acquisition Act. Landowners will receive annual annuities ranging from ₹30,000 to ₹50,000 per acre, depending on land type, while landless families are assured ₹24,000 per year.
Additionally, the project promises skill development and employment opportunities through dedicated GBDA skilling centres, ensuring locals have priority access to jobs created within the AI City. Landowners and farmers will also benefit from tax exemptions, further supporting livelihoods during and after acquisition.
Beyond compensation, the government aims to upgrade village infrastructure, providing smart-city-like amenities such as 50-meter ring roads, underground electricity, modern schools and hospitals, playgrounds, parks, and spaces for government offices and religious sites. Traditional habitations will be retained, and villages will be active partners in the project’s planning and execution.
Environment-conscious planning is central to the project, with 950 acres earmarked for lakes and parks, ensuring Bengaluru’s first AI Township also becomes its largest green zone. The city is designed for seamless connectivity with zero traffic congestion, marrying technology and sustainability.
The AI City, spread over 9,000 acres, will dedicate 2,000 acres to AI industries, creating lakhs of jobs while maintaining a strong focus on hiring locals. DK Shivakumar emphasized that farmers and villages are not just stakeholders but partners in progress, framing the township as a model for future urban development in Karnataka.
(Also Read: Bengaluru’s ORR–Airport metro line set for December 2027 completion: Report)
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