Getco calls for uniform RoW compensation formula

Gujarat-based transmission player writes to Central government, seek intervention

In a bid to address the challenges of differential compensation in right of way (RoW) for transmission lines across the country, Gujarat Energy Transmission Corporation Ltd (Getco) has called for a uniform compensation formula across the country.

The state transmission player has written to the Central government to evolve a uniform compensation formula to address the issue.

The transmission line right of way is obtained from the land owner by paying a fixed charge decided by the transmission players.

The Gujarat government has recently increased the compensation by around 80 per cent from Rs 5 lakh per kilometer of 400 Kv line to Rs 9 lakh per kilometer. The compensation for 220 kv line is Rs 7.5 lakh per km, while for 132 kv and 66 kv lines, the compensation is Rs 2 lakh and one lakh respectively.

“This is much less than what other transmission players are paying to the land owners. Therefore it causes difficulty in convincing land owners for construction of transmission lines,” said a source.

According to sources, the other transmission players operating in the state offer more than double the compensation fixed by the Gujarat government. This has made land acquisition difficult for Getco to achieve its targets to set up transmission lines.

“RoW is a major challenge which everyone has to tackle. But nationally there has to be a uniform compensation formula, which can help transmission players to easily progress on their transmission line plans,” said S K Negi, managing director, Getco.

Further, acquisition of land for the construction of substation is also becoming a tough task for the transmission player. Getco has appealed to the Gujarat government and the Gujarat Industrial Development Corporation (GIDC) to treat transmission as a basic and essential infrastructure for the public.

“Land identification and allotment has to be liberal to cut down the cost and time to enable utilities meet their targets as well as people’s need for electricity,” said Negi.

Getco has laid out investment plan of Rs 2430 crore to set up a total 120 substations and transmission lines of 3249 kms during the year 2013-14. The state-run transmission player has invested around Rs 2332 crore in 2012-13 and set up 80 substations and transmission lines of 3027 kms.

The transmission player has signed memorandums of understanding (MoUs) of Rs 12,112 crore with the Gujarat government.