Gujarat Govt Increases Compensation for Farmers Affected by Power Transmission Lines

New Delhi, India Jul 4, 2026 ALN: The Gujarat government has recently announced a substantial increase in compensation for farmers whose land is utilized for electricity transmission lines and towers. This new policy marks a significant shift in the way compensation is calculated, as it will now be based on twice the prevailing market value of the land, rather than relying on the previously used fixed rate known as the jantri value. This decision comes in response to ongoing protests and demands from farmers across various regions in the state, who have expressed dissatisfaction with the earlier compensation framework.

Historically, the compensation for land affected by electricity infrastructure was determined using the jantri value, which is a government-determined pricing list for land and property in Gujarat. Farmers argued that the jantri rates were often outdated and did not reflect the actual market conditions, leading to inadequate compensation for the loss of their agricultural land. The official release from the Gujarat government highlighted that, prior to this policy change, compensation for electricity poles and transmission lines passing through agricultural land was limited to 200 percent of the jantri value. The new policy aims to rectify this by linking compensation directly to the current market value of the land.

The revised compensation policy not only addresses the valuation method but also expands the scope of what is compensable. Under the previous framework, compensation for land occupied by power transmission towers was calculated solely on the actual base area of the tower. The new policy introduces a more comprehensive approach, allowing for compensation that includes an additional one meter on all four sides of the tower's base. This adjustment is expected to provide a more equitable compensation package for landowners affected by the installation of transmission towers.

Another significant change introduced by the Gujarat government is the elimination of the staggered payment system that had previously been in place. Under the old system, compensation was disbursed in three installments: 40 percent during the foundation work, another 40 percent during the tower installation, and the final 20 percent after the transmission lines were strung. This multi-installment approach often led to delays and uncertainty for farmers, who were left waiting for their full compensation. The new policy mandates that 100 percent of the compensation will be paid upfront before any construction or installation work begins, thereby providing immediate financial relief to affected farmers.

To further enhance the transparency and fairness of the compensation process, the Gujarat government plans to establish a Market Rate Committee (MRC). This committee will be responsible for assessing the prevailing market value of land and will include key stakeholders such as the district collector, representatives of affected landowners, an authorized market valuer nominated by farmers, and representatives from the transmission service provider. By involving various stakeholders in the valuation process, the government aims to ensure that the compensation reflects the true market conditions and addresses the concerns of the farming community.

Additionally, the new compensation framework introduces a differentiated approach based on the location of the land affected by the transmission lines. For compensation under the Right of Way (RoW) corridor of transmission lines, payments will be linked to the market value determined by the MRC. The compensation rates will vary based on the type of area: farmers in rural areas will receive compensation equivalent to 30 percent of the market value, those in municipal council areas 45 percent, and those within municipal corporation limits 60 percent of the assessed market value. This tiered compensation structure is designed to reflect the varying conditions and land values across different regions of Gujarat.

Importantly, the government has also extended the benefits of the revised compensation policy to farmers whose compensation was previously determined under the old rates. This means that farmers whose land is currently affected by transmission line projects that are still under execution will now be eligible to receive the benefits of the new compensation policy. This move is seen as a crucial step towards rectifying past grievances and ensuring that farmers receive fair treatment.

The implications of this policy change are significant for the agricultural community in Gujarat. By enhancing compensation rates and streamlining the payment process, the government aims to foster better relationships with farmers and address their long-standing concerns regarding land acquisition for infrastructure projects. This shift not only acknowledges the vital role that farmers play in the but also recognizes the need for fair compensation practices that reflect the realities of the land market.

Moreover, the decision to involve farmers and other stakeholders in the compensation determination process through the MRC is a positive step towards greater transparency and accountability in governance. Such measures can help build trust between the government and the farming community, which is essential for ensuring cooperation in future infrastructure projects.

In conclusion, the Gujarat government's decision to increase compensation for farmers affected by power transmission lines is a significant policy shift that addresses the concerns of the agricultural community. By linking compensation to the prevailing market value, eliminating staggered payments, and involving stakeholders in the valuation process, the government is taking important steps towards ensuring fair compensation practices. This move not only provides immediate financial relief to affected farmers but also sets a precedent for future land acquisition policies, emphasizing the importance of fair treatment and transparency in the process.