Gujarat’s Revised Land Compensation Policy

Gujarat’s Revised Land Compensation Policy

Why in News?

Gujarat’s revised land compensation policy overhauls payouts for farmers affected by power transmission projects. 

Features of Gujarat’s Revised Land Compensation Policy

• Policy Coverage: The revised policy applies to agricultural land used for electricity transmission towers and transmission lines.
  • It also covers ongoing power transmission projects, ensuring pending beneficiaries receive revised compensation.
  • The revision addresses long-standing demands and protests by farmers, replacing outdated valuation methods with equitable compensation.
• Market-Based Compensation: Compensation is now fixed at 200% of the prevailing market value instead of 200% of Jantri (circle) value, providing farmers with significantly fairer and realistic payments.
• Upfront Payment Provision: The earlier 40%-40%-20% instalment system has been abolished.
  • 100% compensation must now be paid before construction begins, improving financial security for landowners.
• Enhanced Tower Base Area: Compensation now includes the actual tower base plus one additional metre on all four sides, increasing the compensable land area substantially.
  • For 765 kV transmission towers, compensable area has increased from 625 sq. m. to 729 sq. m., resulting in larger payouts. 
• Right of Way (RoW) Compensation: The policy provides RoW compensation based on location: 30% of market value in rural areas, 45% in municipalities and 60% in municipal corporations. 
• Market Rate Committee: A Market Rate Committee comprising the District Collector, farmer representatives, an independent valuer and transmission agency determines prevailing market value, enhancing transparency.
• Significance: Advance payment and transparent valuation are expected to reduce Right of Way disputes, litigation and project delays in transmission infrastructure.
  • The policy broadly aligns with the 2025 Ministry of Power Right of Way compensation guidelines, promoting uniform compensation practices. 
  • Higher compensation protects farm income, offsets productivity losses, and strengthens confidence in public infrastructure projects.

Need Behind the Policy Revision

• Correcting Unrealistic Land Valuation: The earlier compensation framework relied on Jantri (guideline) values, which often remained below prevailing market prices.
  • This created a substantial gap between actual land value and compensation, necessitating a more realistic valuation system. 
• Addressing Persistent Farmer Grievances: Farmers repeatedly raised concerns that compensation did not reflect the economic loss caused by transmission infrastructure.
  • The revision aims to resolve long-standing dissatisfaction and improve acceptance of public utility projects. 
• Supporting Infrastructure Expansion: Gujarat’s growing industrialisation and rising electricity demand require new high-voltage transmission networks.
  • Faster land access became essential for timely infrastructure expansion. 
• Preventing Costly Project Delays: Negotiations, objections and legal disputes over compensation often delayed commissioning of transmission projects, increasing execution costs and affecting power evacuation timelines.
• Strengthening Investor Confidence: Predictable and transparent compensation reduces project uncertainty for public and private transmission developers, encouraging investment in Gujarat’s energy sector.
• Balancing Development with Social Justice: The revision reflects the principle that infrastructure growth should not disproportionately burden landowners, ensuring equitable sharing of development costs. 
• Supporting India’s Energy Transition: Expansion of transmission infrastructure is vital for integrating renewable energy into the grid.
  • Faster land availability supports national clean-energy and grid-modernisation goals.

India’s Land Acquisition Framework

• Governance: Land is a State Subject (Entry 18, State List), while acquisition falls under the Concurrent List (Entry 42), enabling both Parliament and States to legislate.
  • It is governed by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR). 
  • This act replaced the colonial-era Land Acquisition Act, 1894, introducing mandatory consent from landowners, Social Impact Assessments (SIA), and structured Rehabilitation and Resettlement (R&R) provisions.
  • RFCTLARR 2013 mandates compensation up to four times the market value in rural areas and two times in urban areas.
  • It also restricts indiscriminate acquisition of multi-crop irrigated land and requires return of unutilised land under prescribed conditions. 
  • Acquiring land for private projects requires 80% consent from affected families, while Public-Private Partnerships (PPP) require 70% consent. SIAs are compulsory to measure socio-economic impacts before acquisition.
  • Rehabilitation & Resettlement (R&R) is guaranteed for all displaced families, including landless laborers, to ensure their socio-economic status improves post-acquisition. 
• Reforms: 
  • Land Pooling Schemes: States are increasingly adopting land pooling where owners surrender small land parcels for consolidated development, receiving a developed, highly valued portion back without compulsory acquisition conflicts.
  • Digital Land Records: To digitize property ownership, the government has been pushing the Digital India Land Records Modernization Programme (DILRMP) to reduce litigation and fraud through clear, digitized titles.
    • As of 2024, about 98.5% of rural land records had been digitised. 
  • SVAMITVA Scheme: Launched by the Ministry of Panchayati Raj, this initiative uses modern drone technology to map rural residential land, providing clear property cards that secure land ownership and prevent disputes.
    • The National Generic Document Registration System (NGDRS) for uniform property registration, computerisation of Revenue Courts, integration of spatial and textual records, consent-based Aadhaar linkage with Records of Rights, and the NAKSHA pilot for urban land record modernisation. 
  • Model Tenancy Act: Formulated to formalize the rental housing and leasing markets, this reform protects both landlords and tenants while promoting more efficient land use across the country. 

FAQs:

1. What is the revised Gujarat Land Compensation Policy?
   A policy granting double market-value compensation for land used in electricity transmission projects. 
2. Why has Gujarat revised its land compensation policy?
   To ensure fair compensation, address farmer grievances, and accelerate power transmission projects.
3. Who is eligible for compensation under the revised policy?
   Farmers and landowners whose land is used for transmission towers and power lines. 
4. How is land compensation calculated?
   At 200% of the prevailing market value, replacing the earlier Jantri-based calculation.
5. Which projects are covered under the new policy?
   Electricity transmission towers, power lines, and ongoing transmission projects across Gujarat.
6. How will the revised policy benefit landowners?
   It provides higher compensation, upfront payment, transparency, and reduced disputes.
7. What are the key changes in the updated policy?
   Market-based valuation, full upfront payment, larger compensable area, and RoW compensation. 
8. Which authority will implement the revised land compensation policy?
   The Gujarat Government, through district authorities and the Market Rate Committee (MRC). 

Disclaimer: Information in this article is based on official announcements and public records. Regulations and implementation details may evolve over time.