Gujarat to pay farmers double the market value for land affected by power transmission projects
Gandhinagar, July 3
The Gujarat government on Friday announced a major revision to its compensation policy for agricultural land affected by power transmission infrastructure, replacing the existing jantri-based formula with compensation linked to the prevailing market value of land.
Under the new policy, farmers will receive compensation at twice the market rate for land used for power transmission lines and towers, while all compensation will also be paid upfront instead of in instalments.
"The decision was taken under the leadership of Chief Minister Bhupendra Patel and the guidance of Deputy Chief Minister Harsh Sanghavi following discussions and consultations with farmers," officials said.
Gujarat Agriculture Minister Jitu Vaghani, Energy Minister Rushikesh Patel and Minister of State for Energy Kaushik Vekariya, were also involved in the consultations that led to the revised policy.
Until now, compensation for transmission lines passing through agricultural land was calculated at 200 per cent of the jantri value, the government-notified valuation of land.
Under the revised policy, compensation will instead be calculated at twice the prevailing market value of the land.
The state government said the change was made after receiving representations from various farmers' organisations seeking a more realistic basis for compensation.
The government has also revised the method of calculating compensation for land occupied by electricity transmission towers.
Previously, compensation was limited to the actual measured foundation area of the tower.
Under the new policy, an additional one metre on all four sides of the tower base will be included while calculating the compensable area.
As an illustration, the state government said that for a 765 kV transmission line, compensation was previously calculated for a tower base area of 625 square metres.
With the additional one-metre margin on every side, compensation will now be calculated on 729 square metres.
Another significant change concerns the timing of payments.
Earlier, landowners received compensation in three stages, with 40 per cent paid during the foundation stage, another 40 per cent during tower erection and the remaining 20 per cent after transmission wires were installed.
Under the revised policy, eligible landowners will receive 100 per cent of the compensation in a single upfront payment.
To determine land values under the new compensation framework, the state government will constitute a Market Rate Committee (MRC).
The committee will include the District Collector, representatives of landowners, representatives of the transmission service provider, representatives of the affected farmers and authorised market valuers representing farmers.
"The committee is intended to ensure that market values are determined in a transparent and impartial manner," officials said.
The revised policy also specifies compensation for the Right of Way (RoW) corridor through which transmission lines pass.
Based on the market value determined by the MRC, compensation will be paid at 30 per cent of the market value in rural areas, 45 per cent in municipal areas and 60 per cent in municipal corporation areas.
The state government has also clarified that farmers who had already received compensation under the earlier policy but whose transmission line projects are still under execution will also be eligible for benefits under the revised compensation framework.
On the new valuation mechanism, the state government said: "A Market Rate Committee (MRC) will be constituted to determine the actual market value of land, and representatives of the affected farmers and authorised market valuers will be included to ensure transparency and fairness."
The revised policy is expected to apply to power transmission projects involving electricity lines and transmission towers across Gujarat.
— IANS
Reader Comments
It's a good step but the Market Rate Committee needs to be truly independent. If it's filled with government officials and company representatives, farmers might still get shortchanged. Let's see how transparent this really is.
The RoW compensation structure seems fair – 30% in rural, 45% in municipal, 60% in corporation areas. But why the disparity? Rural farmers deserve equal treatment. Still, overall a massive improvement from the jantri system. 👍
This is what progressive governance looks like. Including farmer representatives and valuers in the committee is smart. But I hope the implementation is as good as the policy. Gujarat often leads by example, let's see how other states follow.
Interesting how they're also including pending projects under the new policy. That's rare in India – usually only new projects get new rates. Good to see retroactive benefits for farmers who suffered earlier. Big thumbs up! 😊
The one-metre margin around towers is a smart practical change. Those towers create a dead zone around them for farming. And upfront payment means farmers can reinvest immediately instead of waiting years. This policy shows real understanding of ground realities. 🇮🇳
M Manish T Good move We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.