New Guidelines Streamline Compensation for Transmission Line Right-of-Way

The Ministry of Power has released new guidelines to standardize compensation for land used in the construction of transmission lines. These guidelines were issued on June 14, 2024.

Addressing Delays

The Ministry has observed that inefficient Right-of-Way (RoW) compensation has hampered transmission line projects. Therefore, these new guidelines aim to expedite the process and ensure timely project completion.

Determination of Compensation

Compensation applies only to high-voltage transmission lines (66 kV and above). It does not apply to sub-transmission lines or distribution lines. District authorities will determine compensation based on land value.

Compensation includes:

  1. Tower Base: 200% of land value for the area occupied by the tower base.
  2. RoW Corridor: 30% of land value for the corridor under the transmission line. No construction would be allowed in this area.

States can offer higher compensation rates if needed. Additionally, alternate compensation options are available in areas with Transfer of Development Rights (TDR) policies.

Minimizing Land Use

The guidelines encourage using space-saving technologies like narrow towers or underground cables. A cost matrix is also included to help developers choose the most cost-effective option for each project.

Transparency and Efficiency

As part of the project execution, landowners identification will be documented during the survey of the property. A Standard Operating Procedure (SOP) has also been introduced to provide steps for easier implementation of these guidelines.

It is pertinent to note that states have the option to adopt these guidelines in their entirety or create their own modifications.