The Gujarat Government has announced a major revision in the compensation policy for farmers whose land is used for electricity transmission lines and power towers. Under the new framework, compensation will now be calculated at twice the prevailing market value of the land instead of the earlier rates, providing significantly higher pay-outs to affected farmers.
The decision was taken under the leadership of Chief Minister Bhupendra Patel following consultations with farmers and farmer organisations. Deputy Chief Minister Harsh Sanghavi, Agriculture Minister Jitubhai Vaghani, Energy Minister Rushikesh Patel and Minister of State for Energy Kaushikbhai Vekariya were involved in discussions before finalising the revised policy.
Earlier, compensation for transmission lines and poles passing through agricultural land was paid at 200 per cent of jantri rates. Farmers had repeatedly demanded that compensation should reflect actual market prices, arguing that jantri rates were often much lower than prevailing land values.
The government has now accepted the demand and decided to link compensation directly to market value assessments. A Market Rate Committee (MRC) will be constituted to determine prevailing land values. The committee will include the District Collector, representatives of affected farmers, a market valuer nominated by farmers and representatives of transmission service providers.
The revised policy also increases compensation for land occupied by transmission towers. Earlier, compensation was calculated only on the actual tower base area. Under the new system, the compensable area will include an additional one metre on all sides of the tower base, increasing the land area eligible for payment.
{{/usCountry}}The revised policy also increases compensation for land occupied by transmission towers. Earlier, compensation was calculated only on the actual tower base area. Under the new system, the compensable area will include an additional one metre on all sides of the tower base, increasing the land area eligible for payment.
{{/usCountry}}For example, in the case of a 765 kV transmission line, the compensable area has been increased from 625 square metres to 729 square metres.
In another major relief measure, the government has abolished the staggered payment structure under which compensation was earlier paid in three instalments. Previously, 40 per cent was paid during foundation work, another 40 per cent during tower erection and the remaining 20 per cent after stringing of transmission lines.
Under the revised framework, farmers will receive 100 per cent compensation upfront before the start of project work.
For Right of Way (RoW) corridors, compensation will vary according to location. Farmers in rural areas will receive compensation equivalent to 30 per cent of the assessed market value, those in municipal areas will receive 45 per cent, while landowners in municipal corporation areas will receive 60 per cent.
The government has also clarified that farmers whose compensation had been fixed under earlier rules but whose projects are still under execution will also receive the benefit of the revised policy.
The Gujarat Government said the move reflects its commitment to ensuring fair, transparent and market-linked compensation for farmers affected by key infrastructure projects.