Norms prescribe higher pay for land use in transmission projects

The central government has issued guidelines, raising compensation given to landowners for ‘right of way’ (RoW) in power transmission projects and linking it to market rates against generally lower states’ circle rates.

As per the latest norms, if circle rates are higher, they will prevail over market rates.

Landowners will get compensated for the tower base area at 200% of the land value, against 80% now, while compensation for RoW for the transmission corridor has been doubled to 30% of the land value.


The move is aimed at reducing project delays because of compensation issues which have troubled the sector for a long time.


The right of way in power transmission is generally a strip of land required for constructing, maintaining and protecting the line. It does not require land acquisition, but it is a state subject.

“This compensation will address the potential diminution of land value due to the presence of overhead lines or underground cables within the RoW corridor,” the power ministry said in a notification dated June 14.

The step will help expedite transmission projects and help the government to add lines at a faster pace for upcoming power capacities, including renewables, two industry officials said.

“Even in cases where the compensation for RoW has been settled above circle rates, it has not been able to reach market rates,” an industry official said.

Transmission projects are spread across rural and urban areas, including the country’s vast farmlands.


The diminution of land value because of the transmission project plays a major role in compensation tussles, leading to a delay in projects and hike in costs.

The new guidelines with increased compensation for RoW may prove to be more beneficial as delays cause higher loss, one of the industry officials said.

The norms provide compensation be paid one time and upfront and encourage digital transactions.

However, states can issue their own modified guidelines for determining compensation.