Karnataka Minister for Large and Medium Industries, M B Patil, stated on Sunday that there are no irregularities in the state government’s decision to finalize the sale of 3,666 acres of land in Ballari district to Jindal Steel. He emphasized that the Cabinet’s approval is in line with an order issued on May 6, 2021, under the previous B S Yediyurappa-led BJP government, following a High Court directive in March 2024.
The Karnataka Cabinet approved the sale of 2,000.58 acres in Kurekuppa and Toranagallu villages, and 1,666.73 acres in Toranagallu, Musinayakanahalli, and Yerabanahalli to JSW Steel. The land is priced at ₹1.22 lakh per acre for the first parcel and ₹1.50 lakh per acre for the second.
Patil dismissed accusations from Deputy Leader of the Opposition, Aravind Bellad, of an “internal agreement” as unfounded, suggesting that any such deal would have been with Bellad’s own party, the BJP.
He explained that Jindal Steel had approached the High Court after the Yediyurappa government’s order was not implemented, leading to the court directing the government to comply, which the current administration has done.
Jindal Steel, which has invested ₹90,000 crore in Karnataka and created 50,000 jobs, would have sent a negative signal to investors if the government had failed to execute the lease-cum-sale deed, Patil noted. He also claimed that unlike the BJP, which granted concessions to Chanakya University, the current government did not extend any special favors to Jindal Steel, and the land price was based on market values from 20 years ago.
Patil pointed out that the previous BJP government had given 116 acres of Karnataka Industrial Areas Development Board (KIADB) land to Chanakya University at a significant discount, causing a loss of ₹137 crore to the exchequer, a matter on which Bellad has remained silent.
The land deal with JSW Steel has been contentious for years. In 2005, under Chief Minister Dharam Singh, the Cabinet approved a lease-cum-sale arrangement for 2,000.58 acres, a decision reaffirmed by the JD(S)-BJP coalition government led by H D Kumaraswamy and Industries Minister B S Yediyurappa. Another 1,666 acres were allocated in 2007.
The Congress-JD(S) coalition government in 2019 had set up a Cabinet sub-committee to review the sale proposal after controversy arose over the sale of the land at ₹1.22-1.50 lakh per acre, which the BJP, then in opposition, opposed vigorously. The BJP, once in power, formed another Cabinet sub-committee in 2020, before finally agreeing to the sale in April 2021, only to put the decision on hold due to continued opposition.
