Power Ministry proposes compensation at 85% of land value for tower base area

Also, compensation to a maximum of 15% of land value as determined based on circle rate will be paid towards diminution of land value

The Union power ministry has, to expedite construction of transmission lines, issued guidelines for payment of compensation for damages on the right of way.

The ministry has proposed compensation at 85 per cent of land value as determined by the district magistrate or relevant authority, based on circle or other applicable rates, for the tower base area impacted due to installation of a pylon structure.

Further, compensation to a maximum of 15 per cent of land value will be paid towards its dimunition in the width of an ROW corridor due to laying of a transmission line and imposing certain restrictions. The compensation would be decided by states on the categorisation of land.

The Ministry has made it clear that the compensation amount will be payable only for transmission lines supported by a tower base of 66 KV and above and not for sub transmission and distribution lines below 66 KV. These guidelines were framed based on the report submitted by a committee headed by the special secretary of the union power ministry. Besides, the power ministry has said that the proposed compensation will be in addition to the compensation towards normal crop and tree damages.

The committee noted that Power Grid Corporation of India and states cited difficulties faced in the construction of transmission lines. They spoke about severe resistance being posed by the land owners and farmers with the demand for higher compensation owing to the diminution value of the land below towers and under the corridor. Power Grid Corporation in its submission to the committee pressed for full compensation for tower base and at least 10 per cent of ROW corridor. On the other hand, some of the private sector players suggested that instead of land cost, the corridor compensation per km may be fixed based on voltage of line.

Power Grid Corporation's former chairman and managing director R P Singh told Business Standard: ''Guidelines or a policy decision are a must for the timely implementation of transmission lines as many projects are currently languishing. Compensation of 85 per cent of the land value under the foot of the tower is a welcome move. However, 15 per cent compensation under the transmission lines appears to be on conservative side which in my opinion should be determined based on the land use coming underneath the transmission route depending upon its location.''

Industry sources said states like Maharashtra, Odisha, Uttarakhand, Punjab, West Bengal, Bihar, Karnataka, Kerala and Jharkhand argued for payment of compensation for tower base and part compensation for ROW corridor. Further, Telengana and Andhra Pradesh made a case of payment of compensation for tower base and no compensation for ROW corridor. However, Gujarat, Madhya Pradesh and Uttar Pradesh wanted the decision to be left with state government to decide the compensation.