Gujarat revises compensation policy for land used in power transmission projects

Jul 03, 2026

Gandhinagar (Gujarat) [India], July 4 : The Gujarat government has significantly enhanced the compensation policy for farmers whose land is used for electricity transmission lines and power towers, providing for compensation based on twice the prevailing market value of the land instead of the jantri value.
Gandhinagar (Gujarat) [India], July 3 : The Gujarat government has significantly enhanced the compensation policy for farmers whose land is used for electricity transmission lines and power towers, providing for compensation based on twice the prevailing market value of the land instead of the jantri value.
Under the revised policy, farmers will also receive 100 per cent of the compensation before the commencement of work, replacing the earlier system of staggered payments in three instalments.
According to the state government, the decision was taken under the leadership of Chief Minister Bhupendra Patel following consultations with farmers. Agriculture Minister Jitubhai Vaghani, Energy Minister Rushikesh Patel and Minister of State for Energy Kaushikbhai Vekariya also held discussions with farmers and farmer organisations before the revised framework was finalised.
Earlier, compensation for electricity poles and transmission lines passing through agricultural land was calculated at 200 per cent of the jantri value. Under the revised policy, compensation will now be calculated at twice the prevailing market value of the land.
The government has also increased the compensation for land occupied by power transmission towers. While compensation was earlier calculated only on the actual base area of the tower, the revised policy provides for the inclusion of an additional one metre on all four sides of the tower base while determining the compensable area. According to the government, the compensable area for a 765 kV transmission line has been increased from 625 square metres to 729 square metres.
The earlier system of paying compensation in three instalments--40 per cent during foundation work, 40 per cent during tower erection and the remaining 20 per cent after stringing of transmission lines--has been discontinued. The government said the entire compensation amount will now be paid upfront before work begins.
To ensure transparency and determine land values, the government will constitute a Market Rate Committee (MRC) comprising the District Collector, representatives of affected landowners, an authorised market valuer nominated by farmers and representatives of the transmission service provider.
For compensation under the Right of Way (RoW) corridor of transmission lines, farmers in rural areas will receive 30 per cent of the market value determined by the MRC, while those in municipal and municipal corporation areas will receive 45 per cent and 60 per cent, respectively.
The revised policy will also apply to farmers whose compensation had been determined under the earlier rates but whose power transmission projects are still under execution, making them eligible for the benefits of the new framework.
According to the state government, the decision was taken under the leadership of Chief Minister Bhupendra Patel following consultations with farmers. Agriculture Minister Jitubhai Vaghani, Energy Minister Rushikesh Patel and Minister of State for Energy Kaushikbhai Vekariya also held discussions with farmers and farmer organisations before the revised framework was finalised.
Earlier, compensation for electricity poles and transmission lines passing through agricultural land was calculated at 200 per cent of the jantri value. Under the revised policy, compensation will now be calculated at twice the prevailing market value of the land.
The government has also increased the compensation for land occupied by power transmission towers. While compensation was earlier calculated only on the actual base area of the tower, the revised policy provides for the inclusion of an additional one metre on all four sides of the tower base while determining the compensable area. According to the government, the compensable area for a 765 kV transmission line has been increased from 625 square metres to 729 square metres.
The earlier system of paying compensation in three instalments--40 per cent during foundation work, 40 per cent during tower erection and the remaining 20 per cent after stringing of transmission lines--has been discontinued. The government said the entire compensation amount will now be paid upfront before work begins.
To ensure transparency and determine land values, the government will constitute a Market Rate Committee (MRC) comprising the District Collector, representatives of affected landowners, an authorised market valuer nominated by farmers and representatives of the transmission service provider.
For compensation under the Right of Way (RoW) corridor of transmission lines, farmers in rural areas will receive 30 per cent of the market value determined by the MRC, while those in municipal and municipal corporation areas will receive 45 per cent and 60 per cent, respectively.
The revised policy will also apply to farmers whose compensation had been determined under the earlier rates but whose power transmission projects are still under execution, making them eligible for the benefits of the new framework.

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