Gujarat Revises Land Compensation Policy

Gujarat revised its land compensation policy for electricity transmission towers and power lines in 2026. The policy applies to farmers whose land is used for power transmission projects and to projects that are still under execution.

Compensation Formula for Land Acquisition

The revised policy replaces the jantri-based system, which used circle rates, with compensation fixed at twice the prevailing market value of the land. The policy covers land used for transmission towers and the Right of Way corridor for overhead lines.

Market Rate Committee and Valuation Process

A Market Rate Committee will determine land value for compensation. The committee will include the district collector, representatives of affected landowners, a farmer-nominated market valuer, and representatives of the transmission service provider.

Right of Way and Tower Base Area

Compensation for the Right of Way corridor will be linked to the committee’s assessment. Farmers in rural areas will receive 30% of the market value, municipal areas will receive 45%, and municipal corporation areas will receive 60%. The compensable area for transmission towers has been increased by one metre on all four sides of the tower base.

Payment Structure and Coverage

The earlier three-stage payment system has been scrapped. Farmers will now receive 100% of the compensation before work on the project begins. The revised rates will also apply to transmission projects already under execution.

Important Facts for Exams

• Right of Way, or RoW, is the land corridor required for laying overhead transmission lines.
• A 765 kV transmission line has seen its compensable tower-base area rise from 625 square metres to 729 square metres.
• Jantri is the term used in Gujarat for official circle rates or benchmark property values.
• Market value-based compensation is a common method used in land acquisition and infrastructure projects.