Win for Farmers: Gujarat Announces Double Market-Rate Compensation for Power Lines

In a major policy shift following representations from farmer organisations, the Gujarat government has announced a revised compensation framework for farmers whose land is used for electricity transmission towers and power lines, replacing the existing Jantri-based formula with compensation linked to market value.

The decision also provides for the formation of a Market Rate Committee (MRC) to determine the actual market value of land and includes farmer representatives in the compensation process.

Compensation linked to market value

The state government said farmers had so far received compensation at 200% of the Jantri rate for power transmission infrastructure passing through their fields.

Following demands raised by various farmer organisations, the government has now decided to calculate compensation at twice the prevailing market value of the land, replacing the Jantri-based system.

MRC to determine land value

To ensure transparent and neutral valuation of land, the government will constitute a Market Rate Committee (MRC).

The committee will include:

• District Collector.
• Representatives of affected landowners.
• Farmer representatives and authorised market valuers.
• Representatives of the transmission service provider.

The government said the inclusion of farmer representatives is intended to ensure that landowners receive fair compensation.

Larger compensation for tower area

The revised policy also increases the area considered for compensation where transmission towers are erected.

Instead of calculating compensation only on the actual tower base, one additional metre will now be added on each side of the structure.

For example:

• A 765 KV transmission line previously attracted compensation for 625 square metres.
• Under the revised formula, compensation will now be calculated for 729 square metres.

Full payment in advance

The government has also changed the payment structure.

Earlier, compensation was released in three stages:

• 40% at the foundation stage.
• 40% during tower erection.
• 20% after stringing of power lines.

Under the new policy, 100 per cent compensation will be paid upfront.

Right-of-Way compensation

The government also revised compensation for the Right of Way (RoW) corridor of transmission lines based on the market value determined by the MRC.

The compensation rates will be:

• 30% of market value in rural areas.
• 45% of market value in municipal areas.
• 60% of market value in municipal corporation areas.

Ongoing projects also covered

The government clarified that farmers who had already received compensation under the earlier policy but whose transmission line projects are still underway will also be eligible for benefits under the revised compensation framework.

The decision was taken following discussions involving Chief Minister Bhupendra Patel, Agriculture Minister Jitubhai Vaghani, Energy Minister Hrishikesh Patel and Minister of State for Energy Kaushik Vekaria, with the government stating that the revised policy aims to ensure fair, market-based compensation for farmers affected by power transmission projects.

State-wide protests

In recent months, farmers across Gujarat have protested the installation of high-voltage electricity transmission towers and power lines across agricultural land. Farmer organisations had contended that transmission poles are being erected in the middle of cultivated fields, affecting farming operations, reducing the productive use of land and impacting future agricultural activities.

They had also argued that the compensation offered for land used for transmission infrastructure has been inadequate and should instead be determined under the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, with payments reflecting the actual market value of the land.