Gujarat Boosts Compensation for Farmers Hit by Power Transmission Projects

GANDHINAGAR : In a major relief for farmers, the Gujarat Government has announced a comprehensive revision of its compensation policy for agricultural land used in electricity transmission projects. The new framework replaces the long-criticised jantri-based compensation system with payments linked to twice the prevailing market value, while also ensuring that affected farmers receive 100% compensation before project work begins.

The decision was taken under the leadership of Chief Minister Bhupendra Patel after consultations with farmer organisations. Agriculture Minister Jitubhai Vaghani, Energy Minister Rushikesh Patel and Minister of State for Energy Kaushik Vekariya held discussions with farmers before finalising the revised policy.

Under the earlier system, compensation for land affected by transmission lines and power towers was calculated at 200% of the jantri value. The government has now accepted farmers’ long-standing demand to calculate compensation based on twice the prevailing market value, offering significantly higher payouts.

“The revised policy has been framed keeping farmers’ economic interests at the forefront and ensuring fair, transparent and market-linked compensation,” the government said.

The policy also increases compensation for land occupied by transmission towers. Instead of calculating compensation only on the tower’s base area, an additional one metre on all four sides will now be included, increasing the total compensable area. For instance, the compensation area for a 765 kV transmission tower has been enhanced from 625 sq. metres to 729 sq. metres.

Another major reform is the abolition of the staggered payment system. Previously, compensation was paid in three instalments during different stages of construction. Under the revised policy, the entire compensation amount will be paid upfront before work commences.

To ensure transparency, the government will establish a Market Rate Committee (MRC) comprising the District Collector, farmer representatives, an authorised market valuer nominated by farmers, and representatives of the transmission company to determine the prevailing market value.

Compensation for the Right of Way (RoW) corridor will also be linked to market value, with farmers receiving 30% in rural areas, 45% in municipalities and 60% in municipal corporation areas.