Gujarat revises power transmission land compensation policy
The Gujarat government has revised its Right of Way (RoW) compensation policy for power transmission projects, replacing the existing Jantri (circle rate)-based compensation system with one linked to prevailing market values. The revised policy, announced on July 4, 2026, also introduces upfront compensation payments, expands the compensable area for transmission towers, and establishes a new mechanism for determining land values.
The decision comes amid an ongoing farmers’ agitation in Morbi district over compensation for land being used for a power transmission project.
Market-linked compensation
Under the revised policy, compensation for land affected by transmission lines will be calculated at 200% of the prevailing market value instead of 200% of the Jantri value.
A Market Rate Committee (MRC) will determine the prevailing market value. The committee will comprise the district collector, representatives of affected landowners, a market valuer nominated by farmers, and representatives of the transmission service provider.
Compensation for the Right of Way corridor will also be linked to the committee’s assessment.
Higher compensation and upfront payment
The government has expanded the compensable area for land occupied by transmission towers by including an additional one metre on all four sides of the tower base.
For 765 kV transmission lines, the compensable area has been increased from 625 sq m to 729 sq m.
The earlier three-stage payment system has also been discontinued. Instead of receiving compensation in instalments during different stages of project execution, affected landowners will now receive 100% of the approved compensation before construction begins. The revised policy will also apply to transmission projects that are currently under execution.
RoW compensation by location
The revised policy introduces location-based compensation for the Right of Way corridor. Landowners in rural areas will receive compensation equivalent to 30% of the market value of land. The rate has been fixed at 45% in municipal areas and 60% in municipal corporation areas.
Implications for transmission projects
The revised policy is expected to increase Right of Way costs for transmission developers by linking compensation to prevailing market values and requiring full payment before construction begins. At the same time, it aims to provide a more transparent valuation process through the Market Rate Committee and faster compensation to affected landowners.
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