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Ministry of Power Issues New Guidelines for Transmission Line RoW Compensation

These guidelines specifically address the compensation criteria for transmission lines supported by a tower base of 66 kV voltage level and above, excluding sub-transmission and distribution lines below 66 kV from eligibility.

June 21, 2024. By News Bureau

The Ministry of Power has introduced updated guidelines for the compensation of Right of Way (RoW) concerning transmission lines, superseding previous regulations to ensure a standardised approach across the country. These guidelines specifically address the compensation criteria for transmission lines supported by a tower base of 66 kV voltage level and above, excluding sub-transmission and distribution lines below 66 kV from eligibility. The authority responsible for determining compensation amounts under these guidelines is the District Magistrate, District Collector, or Deputy Commissioner.

Compensation calculations will typically be based on the circle rate, guideline value, or stamp act rates of the land. However, if the market rate exceeds these values, compensation will be determined based on the prevailing market rate as assessed by the District Magistrate or equivalent authority. 

The compensation structure includes a provision where the tower base area warrants compensation equivalent to 200 percent of the land value. Additionally, the RoW corridor compensation, covering land within the defined RoW corridor as per Schedule VII of the Central Electricity Authority Regulations, 2022, amounts to 3 percent of the land value. This compensates for any potential reduction in land value due to the presence of overhead lines or underground cables.

In cases where landowners have accepted alternate modes of compensation under the Transfer of Development Rights (TDR) policy of the State or Union Territory, the licensee or utility is obligated to deposit compensation equivalent to that of the tower base and RoW corridor with the respective local authorities or State Government. The guidelines also advocate for the consideration of various technologies outlined in the Central Electricity Authority Regulations, 2022, to address RoW constraints effectively. A cost matrix provided in the guidelines facilitates the selection of the most cost-effective technological solution for each transmission project, thereby optimising land utilisation.

Compensation payments are stipulated to be one-time and upfront. Digital payment methods such as the Aadhaar Enabled Payment System (AEPS) and Unified Payment Interface (UPI) are recommended for efficient and expeditious disbursement. 

Standard Operating Procedures (SOPs) accompany these guidelines, providing comprehensive instructions for States, Union Territories, and transmission developers on their implementation. States and Union Territories have the flexibility to adopt these guidelines entirely or modify them to suit local requirements. In the absence of specific State Government guidelines, the Central Government's issued directives will govern the compensation determination process for transmission line RoW across the country.

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