The Karnataka cabinet has approved implementation of Upper Krishna Project (UKP) Phase‑III, which directly centres on Bagalkot district. The project involves raising the height of the Almatti dam from about 519.6 metres to 524.256 metres, increasing storage by roughly 100 TMC and enabling irrigation over nearly 5.9 lakh hectares across the command area.
To achieve this, the government will acquire around 1.33 lakh acres of land, including about 75,563 acres that will be submerged, 51,837 acres for canals and 6,469 acres for rehabilitation layouts. In Bagalkot, at least 20 villages and 11 wards of Bagalkot town are expected to be affected, and the state has announced enhanced compensation and a commitment to spend roughly ₹18,000 crore annually over four years on land acquisition and rehabilitation under UKP‑III.