The Ministry of Power (MoP) recently introduced new guidelines for right-of-way (RoW) compensation for transmission lines, including those in urban areas. These guidelines are designed to streamline the construction of transmission lines and ensure their timely completion by effectively addressing RoW issues and standardising the compensation calculation method to bring consistency across various projects and regions.
Determination of compensation
Applicability: The compensation guidelines apply to transmission lines with tower bases operating at a voltage level of 66 kV and above, excluding sub-transmission and distribution lines below 66 kV. States and union territories (UTs) can adopt these guidelines in their entirety or issue their own modified guidelines. ln the absence of state government guidelines, the guidelines issued by the central government will apply for determining compensation.
Compensation determination: According to the new guidelines, the compensation is determined based on the circle rate, guideline value, or Stamp Act rates of the land. If the market rate is higher than these values, the land value is established according to the prevailing market rate, as assessed by the district magistrate, district collector or deputy commissioner. This assessed land value forms the basis for compensation and is communicated by the respective authority.
Tower base compensation: The compensation for the tower base area will be 200 per cent of the land value. The tower base area includes the area enclosed by the four legs of the tower at the ground level, with an additional one metre extension on each side.
Corridor compensation: The compensation amount for the RoW corridor will be 30 per cent of the land value. Land within the RoW corridor, as defined in Schedule VII of the Central Electricity Authority (Technical Standards for Construction of Electrical Plants and Electric Lines) Regulations, 2022, will be eligible for this compensation. This payment is intended to address the potential reduction in land value due to the presence of overhead lines or underground cables within the RoW corridor.
Further, the guidelines state that no construction activity of any kind will be permitted within the RoW of the transmission line.
Alternate compensation: In areas where landowners have been offered or have accepted an alternative mode of compensation under the transfer of the development rights policy of the state or UT, the licensee or utility should deposit the compensation amount with the corporation, municipality, local development authority or the relevant state government.
Landowner identification and payments: During the check survey conducted at the execution stage, the names of landowners whose properties fall within the transmission line’s RoW will be recorded. According to the guidelines, the compensation payments will be made as a one-time, upfront amount. Whenever feasible, compensation will be disbursed using various digital payment methods, including the Aadhaar-enabled payment system and unified payments interface.
Standard operating procedure for TSPs
According to the guidelines, states/UTs and transmission developers should follow standard operating procedures. The transmission service provider (TSP) is responsible for identifying landowners, issuing notices and collecting the necessary documents, including proof of identity and ownership. Revenue officials will verify land records against revenue maps. For land with multiple owners, the TSP must secure a no-objection certificate from all co-owners, attested by the sarpanch and revenue office.
The TSP will measure the tower footing and corridor area in the presence of the landowners, obtaining their signatures and those of the revenue officials. If disputes arise regarding land rates, the district magistrate or an authorised magistrate will address the issue and determine compensation. The TSP is responsible for compensation, covering tower footing, corridor surface, working area and access roads, including both permanent and temporary structures, based on the assessment.
Conclusion
The guidelines suggest that when laying transmission lines in areas with RoW constraints, various technologies should be considered to optimise space usage, such as steel pole structures, narrow-based lattice towers, multi circuit and multi voltage towers, single-side stringing with lattice or steel poles, cross-linked polyethylene underground cables, gas insulated lines, compact towers with insulated cross arms, and voltage source converter-based high voltage direct current systems.
In recent years, RoW compensation issues have become a major bottleneck for transmission projects, causing delays due to landowners demanding higher payouts. Disputes over RoW and land acquisition are significant barriers to the development of renewable energy projects. The MoP’s revised guidelines aim to streamline transmission line construction by addressing RoW challenges. These guidelines introduce advanced technologies and comprehensive procedures to optimise space usage and ensure fair compensation for landowners.
Aastha Sharma