The Ministry of Power has issued new guidelines for compensating landowners for right of way (RoW) for interstate transmission lines, including a mechanism to determine land value in states that have not specified their own methodology.
Under the existing framework, compensation is generally based on circle rates, except where prevailing market rates are higher. States are expected to determine land value and compensation under their respective policies. However, several states are yet to specify such mechanisms, while landowners have raised concerns over compensation being proposed at circle rates significantly below market prices.
New Framework For RoW Compensation
The ministry said addressing RoW issues is necessary to expedite transmission-line construction and ensure timely project completion. The guidelines will apply to transmission lines supported by towers with voltage levels of 66 kV and above.
States can adopt the guidelines entirely or formulate modified policies. Where a state does not have its own policy, the central government's guidelines will apply. The framework also allows alternative modes of compensation where landowners agree to such arrangements under state policies. These can include annuity payments or transferable development rights offered by corporations, municipalities or other concerned urban local bodies.
In areas where RoW constraints make conventional towers difficult to construct, transmission utilities can consider technologies including narrow-base towers, multi-circuit and multi-voltage towers, monopoles and underground cables. An indicative cost matrix has been included to help implementing agencies assess these alternatives.
Compensation will be paid as a one-time, upfront amount. Transmission service providers will submit site-specific plans to the district authority and make payments directly to landowners, preferably through Aadhaar-enabled payment systems.
The guidelines are aimed at providing a clearer mechanism for land valuation and compensation, addressing concerns over differences between circle and market rates, and reducing RoW bottlenecks that can delay the development of transmission infrastructure.