Gandhinagar: The Gujarat government has announced a significant and farmer-friendly revision in compensation rates for agricultural land used for laying electricity transmission lines and installing power towers. The decision has been taken under the leadership of Chief Minister Bhupendra Patel, with guidance from Deputy Chief Minister Harsh Sanghvi, and in consultation with senior ministers including Agriculture Minister Jitu Vaghani, Energy Minister Hrishikesh Patel, and Energy State Minister Kaushikbhai Vekaria.
The government stated that the move is aimed at ensuring fair, transparent, and market-linked compensation for millions of farmers across the state whose land is impacted by power infrastructure projects.
Shift from Government Rate to Market-Based Compensation
Previously, farmers were compensated at 200% of the government “Jantri” rate for land used in electricity line corridors and tower installation. However, under the new policy, compensation will now be calculated based on twice the prevailing market rate of land, replacing the earlier Jantri-based system.
This change is expected to significantly increase payouts, ensuring farmers receive compensation closer to actual land value.
Increased Compensation for Transmission Towers
The state has also revised the compensation formula for land used in electricity tower foundations.
Earlier, compensation was provided strictly based on the actual measured base area of the tower. Under the new decision, an additional one meter will be added on all sides of the tower base area, effectively increasing the total compensated land area.
For example, in the case of a 765 KV transmission line, compensation earlier applied to 625 square meters, which will now be increased to 729 square meters after including the additional buffer area.
One-Time 100% Advance Payment to Farmers
Another major reform introduced is the change in payment structure.
Previously, compensation was paid in stages:
- 40% during foundation work
- 40% during tower erection
- 20% after stringing of transmission lines
Now, farmers will receive 100% lump-sum compensation before the commencement of work, ensuring immediate financial support and eliminating delays.
Formation of Market Rate Committee (MRC)
To ensure fair and transparent land valuation, the state government will establish a Market Rate Committee (MRC). This committee will determine land prices based on actual market conditions.
The committee will include:
- Representatives of affected farmers
- Certified land valuers representing farmers
- District Collector
- Representatives of transmission service providers
This inclusive structure aims to ensure balanced decision-making and prevent undervaluation of agricultural land.
Revised Compensation for Right of Way (RoW) Corridor
For land falling under the electricity line Right of Way (RoW) corridor, compensation will be based on MRC-determined market value, with category-wise rates:
- Rural areas: 30% of market value
- Municipal areas: 45% of market value
- Metropolitan areas: 60% of market value
This tiered structure reflects land value variations across different regions.
Benefit Extended to Ongoing Projects
The government has clarified that farmers who have already received compensation under the previous policy but whose projects are still in progress will also be eligible for benefits under the revised scheme.
This retrospective inclusion ensures equitable treatment and prevents disparities among affected landowners.
Government’s Focus on Farmer Welfare and Transparency
Officials stated that the reforms were introduced after consultations with farmer organizations and stakeholders. The overarching goal is to ensure fair compensation, market-linked valuation, and greater transparency in infrastructure-related land acquisition for electricity projects.
The announcement is expected to benefit lakhs of farmers across Gujarat, particularly those in rural and semi-urban regions where transmission infrastructure expansion is ongoing.
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