Gujarat Govt Issues GR on Power Line Compensation, Farmers Suspend Agitation as MRC Framework Gets Official Nod

The Gujarat government has officially issued the long-awaited Government Resolution (GR) approving a revised compensation policy for farmers whose land is used for electricity transmission towers and power lines, a move that comes after weeks of protests and demands by farmer organisations for a formal notification.

The GR, issued by the Energy and Petrochemicals Department on July 4, gives legal effect to the compensation package announced earlier by the state government, including the constitution of a Market Rate Committee (MRC) to determine land values and the replacement of the earlier Jantri-based compensation system with a market-linked formula.

Farmers had argued that compensation based on Jantri rates failed to reflect the true value of their land and demanded payments linked to prevailing market prices. Several organisations had announced that road blockades, tractor rallies and other protests would continue until the government formally notified the revised policy.

GR gives legal backing to revised policy

The resolution supersedes all previous government orders relating to compensation for transmission towers and power lines and introduces a uniform compensation framework across Gujarat.

The government said the revised policy was framed after reviewing representations received from farmers and other stakeholders regarding compensation for the Right of Way (RoW) required for transmission infrastructure.

Market value replaces Jantri

Under the revised policy, compensation for land permanently occupied by transmission towers will now be calculated at 200% of the market value determined by a newly constituted Market Rate Committee (MRC).

The earlier system, which calculated compensation at twice the Jantri rate, has been discontinued.:

MRC to determine land value

To ensure transparent valuation, the government has directed that every district constitute a Market Rate Committee (MRC) comprising:

• District Collector (Chairperson).
• Representative of affected landowners/farmers.
• Representative of the Transmission Service Provider (TSP).

The Collector may nominate up to two additional members wherever necessary. The committee will determine the reference market value through an independent valuation process before compensation is finalised.

Tower compensation increased

The GR also enlarges the area eligible for tower compensation by adding one metre on each side of the actual tower base.

For instance, a 765 KV transmission tower, previously compensated for 625 square metres, will now qualify for compensation over 729 square metres.

Upfront payment replaces instalments

Another major change is the payment mechanism.

Instead of releasing compensation in stages linked to construction progress, the government has directed that 100% compensation be paid before work begins, with payments made directly into beneficiaries' bank accounts through digital modes.

Right of Way compensation revised

The GR links Right of Way (RoW) compensation to the market value determined by the MRC.

The approved rates are:

• 30% of market value in rural areas.
• 45% in notified urban planning areas and Nagar Panchayats.
• 60% in municipal corporation and metropolitan areas.

Ongoing projects covered

The government has clarified that the revised policy will also apply to ongoing transmission projects.

Farmers who had already received compensation under the earlier framework but whose projects remain under execution will also be eligible for benefits under the revised policy, wherever applicable.

The issuance of the Government Resolution is expected to address one of the principal demands raised by farmer organisations, several of which had announced that protests would continue until the revised compensation policy was formally notified.