Gujarat Government Announces New Compensation Policy for Farmers Affected by Power Transmission Lines
The Gujarat government on Saturday issued new guidelines for compensation of land used in Right of Way (RoW) corridors and tower bases for transmission lines. The policy aims to balance the financial burden on power transmission companies and the potential increase in tariffs for end consumers.
The new resolution, issued by the Department of Energy and Petroleum, supersedes all previous state resolutions related to compensation for damage to land, crops, fruit trees, and other trees during the erection of transmission lines and towers. This move comes after farmers in Jetpar village of Morbi district protested against Adani Energy Solutions Ltd's project, which involves installing high-tension towers to evacuate power from a renewable energy park in Kutch.
On Friday, Agriculture Minister Jitu Vaghani agreed to key demands of the protesters, including doubling the market price for calculating compensation and setting up a Market Rate Committee (MRC). The final market price will be determined by the MRC based on a 'reference market rate' and a 'lottery system', according to the new guidelines.
The method for determining the Reference Market Rate includes two scenarios: if the difference between valuations by two selected valuers is less than 20% of the lower value, the average of both is taken. If the difference exceeds 20%, the reference rate is set at 10% above the lower valuation. If this is not acceptable, a third valuer's report is opened, and the average of the two lowest valuations is used.
The MRC will be formed at each district level to resolve compensation issues and fix market rates. It will appoint three valuers—one each representing landowners, the transmission service provider (TSP), and the District Collector—from a list empanelled by the Insolvency and Bankruptcy Board of India. These valuers must submit independent reports in sealed covers to the District Collector within 21 days.
After receiving all three reports, the District Collector will randomly select two through a 'lottery system' and open them. The Collector may allow immediate commencement of transmission line works if compensation based on the determined market price is paid. The new policy applies to all new transmission lines of 66 kV and above in Gujarat, as well as ongoing projects.
