MoP Amends RoW Compensation Guidelines to Fast-Track Land Valuation for Transmission Projects
The Ministry of Power has amended its Right of Way compensation guidelines for transmission lines, introducing a time-bound and standardised land valuation process to reduce delays and speed up project execution.
January 22, 2026. By Mrinmoy Dey
The amendment follows instances where nomination of land valuers by landowner representatives and subsequent submission of valuation reports to District Magistrates (DMs) have taken considerable time, slowing down project execution, MoP stated in a notification.
To streamline and standardise the process, the Ministry has revised Para 3 of the guidelines, outlining a clearer and time-bound land valuation methodology.
Under the amended provisions, the Member of the Regional Committee (MRC) will now engage land valuers empanelled with the Insolvency and Bankruptcy Board of India (IBBI), preferably from the same state, or from neighbouring states where an adequate pool is unavailable. The MRC is mandated to appoint three valuers – one each nominated by the affected landowners, the Transmission Service Provider (TSP), and the District Magistrate – on the same day the committee meets.
To ensure timely closure, the nominated valuers must submit their valuation reports in sealed envelopes directly to the District Magistrate within 21 days of nomination. Once all three reports are received, two valuation reports will be selected through a lottery system for further consideration, noted the MoP notification.
The revised guidelines also define a structured mechanism for determining the reference market rate. “If the difference in the market rates worked out by the selected valuers is less than 20 percent over the lower value, then the average value of the two valuations shall be taken as the reference market rate. If the difference exceeds 20 percent, then the reference market rate may be determined as 10 percent higher than the lower valuation,” mentioned the notification.
It further added that if this is not agreeable, then the report of the third valuer shall be considered, and the reference market value shall be determined as the average of the two lowest valuations.
The assessed reference market rate will form the basis for final market rate determination by the MRC. Additionally, all land valuers will be paid equal professional fees by the TSP, determined through due process, with these costs included as part of the RoW compensation.
The amendment is expected to reduce procedural bottlenecks, enhance transparency, and accelerate compensation settlements, thereby supporting the timely development of transmission infrastructure critical to India’s expanding power sector.
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