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Gujarat News Updated Jul 4, 2026

Gujarat Doubles Land Compensation for Power Transmission Projects

The Gujarat government has revised its compensation policy for farmers whose land is used for power transmission projects, now offering twice the prevailing market value instead of the jantri value. Farmers will receive 100% of compensation upfront before work begins, replacing the earlier staggered payment system. The policy also increases the compensable area for transmission towers and introduces a Market Rate Committee for transparency. The changes apply retroactively to projects still under execution.

Gujarat revises compensation policy for land used in power transmission projects

Gandhinagar, 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 (ANI): 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. (ANI)

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.

— ANI

Reader Comments

Sneha F

I want to believe this is genuine. But let's see how the Market Rate Committee (MRC) actually functions. Too many committees in the past have been rubber stamps for government rates. I hope farmers get a real say in the valuation process and not just a token presence.

Rajesh Q

Very happy to see this! My uncle's farm in Kutch was affected by a transmission line project and he got peanuts earlier. This new policy seems fair. Especially the provision that includes extra 1 meter around tower base and payment in one go. Government is finally listening to farmers.

Sarah B

Interesting policy change. It's good that compensation is linked to actual market value rather than outdated jantri rates. However, I notice the Right of Way corridor compensation is only 30% for rural areas. That still seems low for farmers who have to give up use of land under transmission lines.

Kavya N

Nice to see the government taking feedback from farmers' organizations before finalizing. But the real test will be implementation. I hope there is a grievance redressal mechanism if the MRC valuations are contested. Also, will the retrospective application cover projects that started years ago?

Deepak U

Big improvement for farmers in Ahmedabad and Surat where land prices are high. But what about areas near villages where market value is still low? The policy should also consider that farmers lose productive land for years due to transmission towers. Still, better than before.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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