Government Issues Compensation Guidelines for Transmission Line Right of Way

Compensation is based on the circle rate, guideline value, or Stamp Act rates for land


The Ministry of Power has issued new guidelines addressing the payment of Right of Way (RoW) compensation for transmission lines, including those in urban areas. These guidelines aim to streamline transmission line construction and ensure timely completion by effectively addressing RoW issues.

The compensation guidelines apply to transmission lines supported by tower bases with a voltage level of 66 kV and above, excluding sub-transmission and distribution lines below 66 kV.

The District Magistrate, District Collector, or Deputy Commissioner will determine the compensation.

Determination of Compensation

Compensation is based on the circle rate, guideline value, or Stamp Act rates of the land. If the market rate exceeds these values, the land value is determined based on the prevailing market rate, as ascertained by the District Magistrate, District Collector, or Deputy Commissioner. This determined land value serves as the basis for compensation and is communicated by the respective authority.

The compensation for the tower base area is set at 200% of the land value. The tower base area includes the area enclosed by the tower’s four legs at ground level, plus an additional one-meter extension on each side.

Compensation for the RoW corridor is 30% of the land value. The land within the RoW corridor, defined in Schedule VII of the Central Electricity Authority (Technical Standards for Construction of Electrical Plants and Electric Lines) Regulations, 2022, is eligible for this compensation. This amount addresses the potential reduction in land value due to the presence of overhead lines or underground cables.

No construction activity would be permitted within the RoW of the transmission line. States can decide on higher rates depending on the area and urgency of the work.

In areas where landowners accept other compensation methods, such as through the states’ and union territories’ transfer of development rights policy , the licensee or utility must deposit the compensation amount with the relevant corporation, municipality, local development authority, or the state government.

In areas with RoW constraints, various technologies can be employed to optimize space usage. These include steel pole structures, narrow-based lattice towers, multi-circuit and multi-voltage towers, single-side stringing with lattice or steel poles, cross-linked polyethylene underground cables, gas-insulated lines, compact towers with insulated cross-arms, and voltage source converter-based high-voltage direct current systems.

Landowner Identification

During the check survey at the execution stage, the names of landowners whose property falls within the transmission line’s RoW are documented. This process adheres to Regulation 8a(B) of the Central Electricity Authority (Technical Standards for Construction of Electrical Plants and Electric Lines) Regulations, 2022.

Compensation payment is one-time and upfront, with digital payment methods such as the Aadhaar-Enabled Payment System and Unified Payments Interface being preferred.

Standard Operating Procedure

States, union territories, and transmission developers should refer to the following standard operating procedure for detailed guidelines on implementing these compensation measures:

  • The Transmission Service Provider (TSP) is responsible for identifying the landowners and issuing the notice to proceed. The TSP will then collect necessary documents from the landowners, such as proof of identity and ownership.
  • Revenue officials will verify land records against revenue maps. In cases involving multiple landowners, the TSP must obtain a no-objection certificate from all co-owners, which needs to be attested by the sarpanch and the revenue office.
  • The TSP will measure the tower footing and corridor area in the presence of landowners, obtaining their signatures along with those of revenue officials. If there are grievances related to land rates, the district magistrate or an authorized magistrate will issue orders to resolve the matter and fix the compensation.
  • The TSP is responsible for compensation, which covers tower footing, corridor surface, working area, and access roads. The compensation includes any permanent and temporary structures such as hutments, houses, and line shifting based on the assessment. The measurement sheet must be verified by the project RoW lead and countersigned by the landowner and the concerned revenue officials.
  • Finally, the TSP will disburse the payment and collect receipts from the landowners, ensuring all transactions are appropriately documented and acknowledged.

States can adopt these guidelines entirely or issue modified guidelines. In the absence of state-specific guidelines, the guidelines issued by the central government will apply.

Disputes over right of way and difficulties in land acquisition are often cited as challenges coming in the way of faster development of renewable energy projects.

Mercom had also reported that achieving India’s clean energy goals would be difficult if transmission infrastructure does not keep pace with the rise in connectivity applications due to a surge in renewable energy installations. Stakeholders had said cross-country transmission lines encounter right-of-way issues, among others.

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