Adani power infra: Gujarat government notifies new compensation policy for farmers

The Gujarat government on Saturday announced new guidelines for compensation of land in Right of Way (RoW) corridors and towers for transmission lines to “balance the financial burden on the power transmission companies and the possible increase in tariff to the end consumer”.

Citing various queries and representations regarding compensation of land in Right of Way (RoW) corridors and tower based areas during laying of transmission lines, the resolution issued by the Department of Energy and Petroleum will supersede provisions of all other resolutions issued earlier by the state relating to compensation for damage to land/ crops/ fruit trees and other trees, during the erection of transmission lines and towers.

The Indian Express reported Friday how farmers at Jetpar village of Morbi district who were facing loss of land were protesting against Adani Energy Solutions Ltd (ASEL) whose Special Purpose Vehicle, Halvad Transmission Ltd is installing high tension towers for transmission cables to evacuate power from the renewable energy park at Khavda in Kutch. They would wind up the agitation only after the state issues a fresh resolution, they had said.

On Friday, Agriculture Minister and Gujarat government spokesperson Jitu Vaghani agreed to key demands of the farmers including doubling the market price for calculating compensation, and the setting up of a Market Rate Committee (MRC). The final market price will be determined by the MRC based on the ‘reference market rate’ as well as a ‘lottery system’, according to the new guidelines.

The method for determining the Reference Market Rate (incorporated for the first time since the state adopted the setting of the MRC) states that if the difference in the market rates determined by two selected valuers is less than 20 per cent of the lower value, the average value of both the valuations will be considered as the reference market rate.

In the second case, if the difference between the two is more than 20 per cent, the reference market rate can be fixed at 10 per cent more than the lower valuation. “Only if this is not acceptable, the sealed report of the third valuer shall be opened and the reference market rate shall be finalised by taking the average of the two lowest valuations,” the guidelines says.

The MRC will be formed at each district level to resolve the issues of compensation of affected land and to fix the market rate. For the valuation of the land, it will appoint land valuers who are empanelled by the Insolvency and Bankruptcy Board of India. Three valuers (one by the landowners’ representative, one by the TSP and one by the District Collector) will be appointed on the day of the committee meeting itself.

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Farmers at the protest site, Upwas Chhavni, in Jetpar village in Morbi, Gujarat (File photo)

The appointed evaluators will submit their independent reports in a sealed cover directly to the District Collector within 21 days of their appointment by the MRC. After receiving all three reports, two will be opened by the District Collector by randomly selecting them through a ‘lottery system’.

The District Collector can allow immediate commencement of physical works of transmission lines without any hindrance on condition of payment of compensation based on the market price as determined by the MRC.

The provisions of the GR published with the ‘in-principle approval and approval received’ from the Finance Department, Revenue Department and Agriculture and Cooperation Department through letter on July 4, 2026 are equally applicable to all new transmission lines of 66 kV and above to be laid in the Gujarat and to all works of transmission lines of 66 kV and above which are currently in progress.

New Compensation Norms

* Tower Base Compensation: 200% of market value as determined by the MRC for loss of land in the tower base area (the area between the four bases of the tower). To calculate area, an extension of 1 meter on each side in addition to the actual area of the four bases of the tower will be taken into account.

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* Right of Way Corridor Compensation: For land due to RoW Corridor (width and length of transmission line), the compensation will take MRC-determined market value of the land for the area over which the land passes. In rural areas, it will be 30% of land value, 40% for municipalities, nagar panchayats, 45% for all other urban planning areas, and 60% for Municipal Corporations and Metropolitan Areas. For the swinging power line RoW Corridor, width RoW will be based on the transmission voltage.

* For crop loss compensation: Rates fixed by Agriculture Produce Market Committee (APMC) will be applicable and the valuation will be certified by the concerned sarpanch/ talati/mamlatdar or the concerned revenue officer.

* Payment method and terms: One-time compensation for loss of land/ crops/ fruit trees has to be paid in lumpsum and in advance, with the consent of the farmer, before work commences. Amount will be deposited directly into the bank account through digital payment methods.