Power ministry issues compensation guidelines for transmission line right of way

The power ministry has issued new guidelines for compensation to landowners for right of way (RoW) for interstate transmission lines. The guidelines lay down mechanisms to determine the market value of land for states that are yet to specify the manner of determining land value.

As per existing guidelines, compensation is ordinarily based on the circle rates except where the market rate exceeds them. The state governments are supposed to determine the land value and compensation in the manner specified by their own policies.

The ministry said many states are yet to specify the manner of determining the rate, and land owners have raised concerns over compensation still being proposed at unacceptable circle rates which are significantly lower than market rates.


The ministry said it was necessary to address the RoW issues effectively to expedite construction of transmission lines and ensure timely completion.

The guidelines will apply to transmission lines supported by towers with a voltage level of 66 kV and above.

States can adopt the guidelines in their entirety or issue their own modified policy. Where a state does not have a policy, the central government's guidelines will apply.

The guidelines also provide for alternative modes of compensation where landowners accept such arrangements under the state policy. These could include annuity payments or transferable development rights offered by the corporation, municipality or other concerned urban local body.

In areas where RoW constraints make conventional towers difficult to build, transmission utilities can consider technologies such as narrow-base towers, multi-circuit and multi-voltage towers, monopoles and underground cables. The guidelines include an indicative cost matrix to help implementing agencies assess these alternatives.

Compensation will be paid one time and upfront. Transmission service providers will submit site-specific plans to the district authority and make payments directly to landowners, preferably through Aadhaar-enabled payment systems.