The state government needs Rs 430 crore for the first phase in the acquisition of zerayati land spread over 9,237 acres around Kolleru lake in Krishna and East Godavari districts. The land is situated in fifth contour of Kolleru lake that is being restored after the Supreme Court's directions. A crucial meeting will be held with the Chief Minister, Dr Y.S. Rajasekhar Reddy, along with the forest department officials on June 9 for this purpose. "As per GO, 120 traditional agriculture is allowed in the land in the sanctuary," a former official of the special cell of Kolleru lake, Mr Noor Ahmed, said. "The farmers cannot use fertilisers or pesticides. These lands can be acquired by paying compensation. We have to wait for the outcome of the meet." There are around 48 villages within the fifth contour limits. Forest and revenue officials have already destroyed fishponds in the sanctuary. During his visit as part of the Mee Kosam rath yatra, the Telugu Desam chief, Mr N. Chandrababu Naidu, alleged that several people were victimised due to a wrong interpretation of the guidelines. He assured that the sanctuary area from fifth contour to third contour would be downsizing and that 35,000 acres would be freed. The TD earlier alleged that the government meted out injustice to zerayati farmers by denying them compensation. The forest department is now moving ahead towards acquiring the zerayati land. However, the department does not have enough funds. After acquiring the land the department has to look into acquiring private lands falling below the fifth contour level. Kolleru lake is one of the largest shallow fresh water lakes in Asia located between the delta of Krishna and Godavari rivers in Andhra Pradesh. It serves as a natural flood balancing reservoir for the two rivers. There are 122 villages in the lake area out of which 46 are bed villages and 76 are belt villages. In more than five belt villages, cultivation is done both in the patta land as well as in the government land on payment of rent. The Kolleru lake extends over an area of 901 sq. kms.