The much-awaited Dharwad–Belagavi new railway line project continues to face significant delays, with land acquisition moving at a sluggish pace. Despite years of planning, the Karnataka government has not yet handed over even a single parcel of acquired land to the Railways, delaying the start of construction and raising concerns over a steep escalation in project costs.
While land prices for acquisition were finalised in Dharwad district several years ago, compensation payments have progressed slowly. In Belagavi district, the situation is even more uncertain, with compensation rates yet to be finalised. Farmers in the district have also launched protests demanding higher compensation for their land.
The proposed 73-km direct railway line requires the acquisition of 1,588 acres—210 acres in Dharwad district and 1,378 acres in Belagavi district.
In Dharwad, the acquisition process for all 210 acres has been completed in two phases, covering 121 acres in the first phase and 89 acres in the second. However, compensation for a significant portion of the acquired land is still pending, with only 48 acres fully settled so far.
In Belagavi district, the acquisition process has been completed for only 621 acres, but compensation has not yet been paid. The acquisition process for another 779 acres is yet to begin.
A year ago, the state government released ₹50 crore towards land acquisition compensation in Dharwad. However, the Karnataka Industrial Areas Development Board (KIADB) has so far disbursed only ₹21 crore, leaving ₹29 crore yet to be distributed.
KIADB has sought additional funds from the state government to continue the acquisition process. However, the Finance Department has directed the agency to first distribute the remaining amount already sanctioned before seeking further allocations. Meanwhile, there are allegations that delays in processing compensation are also slowing down the project.
The South Western Railway has urged the state government to hand over at least the land acquired in Dharwad so that preliminary work can begin. Officials say that if the remaining ₹29 crore is disbursed, around 65–70 more acres can be brought under possession, enabling the completion of the first phase of acquisition in Dharwad.

This would allow the state government to hand over around 113 acres to the Railways, providing enough land to begin initial construction activities.
Project Cost Nearly Triples
The prolonged delay has already had a significant financial impact. Of the total 1,588 acres required, only 48 acres have been fully acquired and made available so far, leaving nearly 1,540 acres still pending.
When the project was first approved, it was estimated to cost around ₹927 crore. That figure has now risen to nearly ₹2,500 crore, and officials warn that further delays in land acquisition could push costs even higher.
“Out of the ₹50 crore released by the state government, ₹21 crore has already been distributed to farmers. The remaining amount will be disbursed as farmers submit the required documents. We will then send a fresh proposal to the government seeking additional compensation funds,” said Manjunath Dombar, Special Land Acquisition Officer, KIADB, Hubballi.
Project Snapshot
Rail line length: 73 km
Land required in Dharwad: 210 acres
Land required in Belagavi: 1,378 acres
Land fully acquired so far: 48 acres
Original project cost: ₹927 crore
Current estimated cost: Nearly ₹2,500 crore


