Gujarat Announces Higher Compensation for Land Used for Transmission Lines

The Gujarat government has announced a new compensation policy for farmers whose land is used for electricity transmission towers and power lines, replacing the existing jantri (circle rate)-based compensation system with one linked to the prevailing market value of land.

The revised policy comes amid an ongoing agitation by farmers in Morbi district over compensation for land acquired for a power transmission project.

Under the new framework, compensation for land affected by electricity transmission lines will be calculated at twice the prevailing market value, replacing the earlier formula of 200 percent of the jantri value.

The government has also enhanced compensation for land occupied by transmission towers by increasing the compensable area to include an additional one metre on all four sides of the tower base.

For a 765 kV transmission line, the compensable area has been expanded from 625 square metres to 729 square metres, resulting in higher payouts to affected landowners.

In another significant change, the state has abolished the existing three-stage compensation mechanism. Farmers will now receive the entire compensation amount before construction work begins, instead of receiving payments in instalments during different stages of project execution.

To ensure transparent valuation, the government will constitute a Market Rate Committee in each district. The committee will comprise the district collector, representatives of affected landowners, a market valuer nominated by the farmers, and representatives of the transmission service provider.

The committee will determine the prevailing market value of land, which will serve as the basis for calculating compensation for the Right of Way (RoW) corridor.

According to the state government, the revised compensation policy will also apply to electricity transmission projects that are currently under execution, allowing eligible farmers involved in ongoing projects to benefit from the new provisions.