Gujarat farmer compensation doubled to market value for power lines and towers

The Gujarat government on Friday raised compensation for farmers whose land is used for electricity transmission lines and towers. Payments will now be worked out at twice the prevailing market value of the land. The move follows protests in parts of the state over the earlier policy for installing transmission lines, poles and towers on farmland.

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An official release said the change came after long-standing representations from farmer organisations. Until now, compensation for electricity poles and transmission lines across agricultural land was paid at 200 per cent of the jantri value. The government will now use twice the prevailing market value instead of the jantri rate for calculating payouts.

Gujarat government compensation policy links payouts to market value

The release noted that the jantri rate is the Gujarat government’s unit price list for land and property. To make valuation clearer, the state will form a Market Rate Committee MRC to assess the prevailing market value of land. The committee will include the district collector and representatives of affected landowners.

It will also include an authorised market valuer nominated by farmers. Representatives of the transmission service provider will be part of the MRC as well, the release said. For compensation under the Right of Way RoW corridor of transmission lines, payments will be tied to the market value decided by the MRC.

Gujarat government compensation percentages set for RoW corridor

Under the revised approach, farmers in rural areas will get 30 per cent of the market value. Those in municipal council areas will receive 45 per cent of the market value. Farmers within municipal corporation limits will get 60 per cent of the assessed market value, according to the release.

The Gujarat government also raised compensation linked to land occupied by power transmission towers. Earlier, compensation was calculated only on the actual base area of the tower. Now the base area will include an extra one metre on all four sides. This raises the compensable area and payout.

Gujarat government compensation to be paid upfront for transmission work

The release said the state removed the earlier instalment system for payments. Previously, compensation was paid in three stages. Farmers received 40 per cent during foundation work and 40 per cent during tower installation. The final 20 per cent came after stringing of transmission lines.

Under the new policy, 100 per cent of the compensation will be paid before work starts, it said. The government also extended the revised benefits to some ongoing projects. Farmers whose compensation was fixed under earlier rates can shift to the new policy if projects are still under execution.

With inputs from PTI