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Gujarat revises land compensation policy for power transmission projects: Govt

The decision comes amid an ongoing farmers’ agitation in Morbi district over compensation for land being used for a power transmission project

Published on: Jul 4, 2026, 12:30:27 IST
By , Ahmedabad
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Gujarat government on Friday announced a new compensation policy for farmers whose land is used for electricity transmission towers and power lines, replacing the existing jantri (circle rates)-based system with compensation based on twice the prevailing market value of land.

For a 765 kV transmission line, the compensable area has been increased from 625 square metres to 729 square metres. (Representative Photo/iStock)
For a 765 kV transmission line, the compensable area has been increased from 625 square metres to 729 square metres. (Representative Photo/iStock)

The decision comes amid an ongoing farmers’ agitation in Morbi district over compensation for land being used for a power transmission project.

According to a state government press release, compensation for land affected by transmission lines will now be calculated at twice the prevailing market value instead of 200% of the jantri value.

Compensation for land occupied by transmission towers will also increase as the compensable area will include an additional one metre on all four sides of the tower base.

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For a 765 kV transmission line, the compensable area has been increased from 625 square metres to 729 square metres, it said.

The government also scrapped the three-stage payment system. Farmers will now receive the entire compensation before work begins instead of in instalments during different stages of the project, the release said.

A Market Rate Committee comprising the district collector, representatives of affected landowners, a market valuer nominated by farmers and representatives of the transmission service provider will determine the market value of land.

Compensation for the Right of Way corridor will be linked to the committee’s assessment, while the revised policy will also apply to projects that are still under execution, it said.

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