The Ministry of Power has introduced revised guidelines for determining compensation to landowners for the right of way (RoW) required by interstate transmission lines. The framework aims to address disputes over land valuation and facilitate faster development of transmission infrastructure across India.
The guidelines establish a central mechanism for assessing land value in states that have not formulated their own policies for RoW compensation. The move addresses concerns that compensation based on government-notified circle rates may fall significantly below prevailing market prices in certain areas.
Under the existing arrangement, state governments are responsible for framing compensation policies and determining land values, generally using circle rates as the basis unless higher market rates apply. However, the absence of a clearly defined valuation methodology in several states has contributed to concerns among landowners and delays in transmission projects.
The new framework covers transmission lines supported by towers operating at voltage levels of 66 kV and above. State governments may adopt the central guidelines in their entirety or introduce modified policies suited to their requirements. In states without a separate compensation policy, the central guidelines will serve as the applicable framework.
The guidelines also allow alternative compensation arrangements where permitted under state policies and accepted by landowners. These options may include annuity-based payments and transferable development rights provided through municipal corporations, municipalities or other relevant urban local bodies.
To address right-of-way restrictions in congested or difficult locations, transmission utilities may consider alternatives to conventional tower structures. These include narrow-base towers, multi-circuit and multi-voltage towers, monopoles and underground cabling. An indicative cost matrix has also been included to help implementing agencies evaluate the financial implications of these alternatives.
Under the prescribed payment mechanism, compensation will be provided as a one-time upfront payment. Transmission service providers will be required to submit site-specific plans to the relevant district authority and pay compensation directly to landowners, preferably through Aadhaar-enabled payment systems.
The revised guidelines are intended to improve clarity in land valuation, reduce compensation-related disputes and address a key challenge affecting transmission infrastructure development. By establishing a fallback mechanism for states without their own policies and permitting alternative technical solutions, the framework seeks to support the timely execution of transmission projects needed to strengthen India’s electricity network.
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