Govt Revises Compensation Guidelines for Transmission Line Projects

New Delhi, Mar 25 (KNN) In a bid to expedite power infrastructure projects and standardise compensation practices, the Ministry of Power has issued revised guidelines for Right of Way (RoW) compensation for transmission lines.

These new norms, released on March 21, 2025, aim to streamline the compensation process and ensure timely resolution of disputes.

The revised guidelines introduce two compensation components—one for the “tower base area” and another for the “line corridor.” Under this framework, landowners will receive 100 per cent of the land value for the tower base area, while compensation for the line corridor will be determined based on the extent of land use affected by the overhead transmission lines.

The land value will be calculated using the higher of two benchmarks—either the government-notified circle rate or the average sale deed rates of similar land in the past year. District Collectors or Deputy Commissioners will be responsible for evaluating and disbursing compensation.

The ministry clarified that government, forest, or community land compensation norms will be decided by respective States or Union Territories, but they must not be lower than the central guidelines.

States and UTs can adopt their own compensation structures provided they meet or exceed the central norms.

These revised guidelines apply only to future projects where construction has not commenced, and prior compensation has not been disbursed. Existing projects under execution remain unaffected.

The Central Transmission Utility of India (CTUIL) has been tasked with ensuring compliance among all transmission licensees to prevent inconsistencies in compensation practices across States.

The guidelines have been shared with key stakeholders, including the Central Electricity Authority (CEA), Central Electricity Regulatory Commission (CERC), State Power Utilities, and all transmission licensees through CTUIL.

(KNN Bureau)