Gujarat govt revises farmer compensation for power projects

The Gujarat government has announced a major revision to its compensation policy for farmers whose land is used for electricity transmission lines and towers, linking payouts to the prevailing market value of land instead of the jantri rate and ensuring compensation is paid before work begins.The revised policy comes in response to long-standing demands from farmer organisations and protests in several parts of the state against the earlier compensation mechanism for power transmission infrastructure passing through agricultural land.

ખેડૂતો માટે ગુજરાત સરકારનો ઐતિહાસિક નિર્ણય; વીજ ટાવર અને લાઇન વળતરમાં માતબર વધારો...#GovernmentWithFarmers @CMOGuj pic.twitter.com/50vSmuAiQW

— Gujarat Information (@InfoGujarat) July 5, 2026

According to the information, under the new framework, compensation for transmission lines and electricity poles will be calculated at twice the prevailing market value of the land, replacing the earlier system that provided compensation at 200 per cent of the government-notified jantri value.The government has also enhanced compensation for land occupied by power transmission towers. Previously, compensation was calculated only on the actual base area of the tower. Under the revised policy, the compensable area will now include an additional one metre on all four sides of the tower base, increasing the total area eligible for compensation and providing higher payouts to affected landowners.
In another significant relief, the state has abolished the staggered payment system under which compensation was released in three instalments—40 per cent during foundation work, 40 per cent during tower installation and the remaining 20 per cent after transmission line stringing.Instead, farmers will now receive 100 per cent of the compensation upfront before project work commences, offering greater financial security and certainty.
To ensure transparency in determining land values, the government will establish a Market Rate Committee (MRC)in each district. The committee will comprise the district collector, representatives of affected landowners, an authorised market valuer nominated by farmers, and representatives of the transmission service provider.Compensation for the Right of Way (RoW) corridor under transmission lines will also be linked to the market value assessed by the MRC. Farmers in rural areas will receive compensation equivalent to 30 per cent of the assessed market value, those in municipal council areas 45 per cent, and landowners within municipal corporation limits 60 per cent of the market value.
The government has also extended the benefits of the revised policy to farmers whose compensation was determined under the previous rules but whose transmission line projects are still under execution. These landowners will also be eligible for compensation under the new, enhanced framework.

(State Correspondent)