Ahmedabad: In a major relief for farmers, the Gujarat government has announced a significant increase in compensation for agricultural land used for electricity transmission towers and power lines. Moving away from the existing Jantri-based system, farmers will now receive compensation at twice the prevailing market value of their land, a decision expected to benefit lakhs of landowners across the state.

The decision was taken after consultations with farmer representatives and was announced under the leadership of Chief Minister Bhupendra Patel. Agriculture Minister Jitu Vaghani, Energy Minister Kanubhai Desai and Minister of State for Energy Mukesh Patel said the revised policy aims to ensure fair, transparent and market-linked compensation for farmers whose land is affected by power transmission infrastructure.

Until now, compensation for land used for transmission lines was calculated at 200% of the Jantri (government guideline) value. Following repeated representations from farmer organisations, the state government has decided to replace the Jantri-based formula with compensation equal to 200% of the prevailing market rate, ensuring farmers receive compensation that better reflects the actual value of their land.

The government has also revised the method for calculating compensation for land occupied by transmission towers. Earlier, compensation was paid only for the actual base area of the tower. Under the new policy, an additional one metre will be added on all four sides of the tower base while calculating the compensable area, resulting in higher payouts.

For instance, in the case of a 765 kV transmission line, compensation was previously calculated on 625 square metres. With the revised formula, the compensable area will increase to 729 square metres, providing higher compensation to affected landowners.

Another major change is in the payment process. Previously, compensation was released in three stages—40% during foundation work, 40% during tower erection and the remaining 20% after stringing of power lines. Under the revised policy, 100% of the compensation will now be paid upfront in a single instalment, before the project progresses.

To ensure transparent and impartial determination of land values, the state government will constitute a Market Rate Committee (MRC). The committee will include the district collector, representatives of affected landowners, an authorised market valuer representing farmers, and a representative of the transmission service provider. The government said the committee will determine the actual market value of land in a transparent manner while safeguarding farmers’ interests.

The revised policy also introduces a new compensation structure for the Right of Way (RoW) corridor of transmission lines. Compensation will be linked to the market value determined by the MRC and will vary depending on the location of the land. Farmers in rural areas will receive 30% of the market value, those in municipal areas 45%, and those in municipal corporation limits 60% of the assessed market value for the affected corridor.

The government has also clarified that farmers who had already received compensation under the old policy but whose transmission projects are still under execution will also be eligible for benefits under the revised compensation framework. The move is expected to provide substantial financial relief to affected farmers while reducing disputes related to land acquisition for power transmission projects. DeshGujarat