The power ministry has released updated guidelines for compensation to landowners for right of way (RoW) for interstate transmission lines. The guidelines underlines methods to determine the market value of land for states that are yet to specify the manner of determining land value.


According to the existing guidelines, compensation is calculated typically based on the circle rates unless the market value exceeds them. The state authorities are responsible for the determination of the land value and compensation in the manner specified by their own policies.


According to a statement by the ministry, several states are yet to finalise a specific mechanism to determine the rate, and the landowners have raised concerns over compensation still being proposed at unacceptable circle rates which are significantly less than market rates.


The ministry also said it was essential to address the RoW issues effectively to accelerate construction of transmission lines and ensure timely completion. Applicable to tower-supported infrastructure rated at 66 kV or higher, these guidelines can be adopted in full or adapted by individual states where no state policy exists, the central framework defaults as the standard.


The guidelines also offer substitute modes of compensation where landowners accept such arrangements under the state policy. The modes could include annuity payments and transferable development rights provided by the local municipal bodies or civic agencies.