The Gujarat government on Friday announced a major revision to its compensation policy for farmers whose land is used for electricity transmission towers and power lines, replacing the existing jantri (circle rates)-based compensation system with a market value-linked formula. Under the new policy, compensation for affected land will be calculated at twice the prevailing market value instead of 200 per cent of the jantri value, a move the state says is aimed at providing fairer and more realistic compensation to landowners.

The policy change comes against the backdrop of an ongoing farmers' agitation in Morbi district, where landowners have been protesting the compensation offered for land acquired or used for a power transmission project. Farmers had argued that compensation based on jantri rates did not reflect the actual market value of their land, resulting in inadequate payouts. The revised framework is expected to address these concerns by aligning compensation more closely with prevailing land prices, which are often significantly higher than government-notified circle rates.

According to a state government press release, the revised policy also increases compensation for land occupied by transmission towers by expanding the compensable area. Instead of calculating compensation only for the land directly covered by the tower base, the new rules include an additional one metre on all four sides of the structure. As a result, the compensable area for a 765 kV transmission tower has been increased from 625 square metres to 729 square metres. This enhancement is expected to provide higher compensation to farmers whose land is permanently affected by the installation of high-voltage transmission infrastructure.

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Another significant change introduced by the government is the abolition of the existing three-stage payment mechanism. Previously, compensation was paid to farmers in instalments at different stages of project execution. Under the revised policy, landowners will receive the entire compensation amount before construction work begins. The government said the change is intended to provide financial certainty to affected farmers, reduce disputes over delayed payments and facilitate smoother execution of transmission projects. Receiving the full amount upfront is also expected to ease concerns among landowners who had objected to staggered payments.

The revised compensation framework is likely to have an important bearing on infrastructure development in Gujarat, where several large-scale electricity transmission projects are underway to strengthen the state's power network and support growing industrial and residential demand. Transmission lines require land for towers and corridors, often passing through privately owned agricultural fields. While such projects are considered critical for improving electricity supply and grid reliability, they have frequently faced resistance from farmers over compensation and land-use issues. By linking compensation to prevailing market values and expanding the area eligible for payment, the government aims to strike a balance between infrastructure development and the interests of affected landowners.

The announcement is also being viewed as a response to growing pressure from farmers in Morbi and other parts of the state, who have sought greater transparency and fairness in compensation for land used in public infrastructure projects. Although the government has presented the revised policy as a step towards ensuring equitable treatment for farmers, its implementation will be closely watched by stakeholders. The effectiveness of the new framework will depend on how prevailing market values are determined and whether the revised compensation adequately addresses the concerns that have led to recent protests. The changes represent one of the most significant updates to Gujarat's land compensation policy for power transmission projects and are expected to influence future negotiations between authorities, project developers and affected landowners.

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