A government order banning cultivation of both the species would be issued in a month, Minister for Forest C H Vijayashankar told reporters here.
Ground water table plummeting below 1,000 feet in parts of Kolar district could be attributed to indiscriminate cultivation of eucalyptus, he pointed out.
There are instances of people opting for eucalyptus and acacia cultivation in rain catchment of areas of Malnad and semi-Malnad areas, which was contributing to depletion of underground water level, he said.
The Forest Department has been directed to prepare a blue print for increasing the green cover in the state and a policy on planting trees on both sides of roads would soon be announced.
Through the policy the government would unveil guidelines on planting specific fruit-bearing saplings, which could also generate income to panchayats, Vijayashankar said.
The government is also contemplating to institute awards for forest officials in recognition of their services in enhancing forest cover, promotion of nurseries.