"Land prices in Bangalore have shot up sharply. There is no question of acquiring land from farmers. They (investors) have to deal with farmers directly. We do not want to play middlemen", he told reporters in Bangalore.

Responding to questions on the Cabinet's approval last week for an SEZ in Bangalore Rural region, proposed to be set up by a Mumbai-based firm, he said the government would not acquire farmers' land.

The government would give its 5,000 acres of land at the prevailing market rates. The rest of the required land would have to be purchased by investors directly from farmers, he said.

Kumaraswamy, however, said that in certain areas, some incentives had to be provided to investors. On 8,000 acres in and around Bangalore recovered from land grabbers, he said 4,000 acres would be provided to the Bangalore Development Authority, city corporation, Housing Board and Cooperation Department for undertaking housing activities targetted at benefitting the needy people.

He said 900 acres were meant to be auctioned, of which 350 acres had been auctioned. Bids lower than the rates fixed by the government would not be accepted, he said. The remaining land would be used in public interest.