Government Updates Guidelines to Resolve Land Value Conflicts in Transmission Line Projects | India News

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New Delhi: Revised Land Valuation Norms for Transmission Line Projects

In response to growing concerns from landowners regarding compensation for land used in transmission line projects, the Union Ministry of Power has implemented revised guidelines. This initiative aims to ensure fair valuation of properties that have often been assessed at circle rates, which are significantly lower than current market prices.

Engagement of Land Valuers

To address these disparities, the ministry has approved the hiring of land valuers who will facilitate reaching an agreeable compensation amount. This approach comes after amendments to the original guidelines established in March 2025. The new regulations propose the formation of a Market Rate Committee (MRC) in states that lack mechanisms for determining land values for interstate transmission projects.

Structure of the Market Rate Committee

The MRC will consist of three land valuers, with one nominated by each of the following parties:

1. Affected Landowners
2. Transmission Service Provider
3. District Magistrate

These valuers will be tasked with submitting their reports within 21 days.

Selection and Calculation of Reference Market Rate

From the three valuations submitted, two will be randomly selected through a lottery system for further evaluation. If the difference between the two chosen valuations is less than 20% of the lower estimate, the average of these values will serve as the benchmark rate. Conversely, if the difference exceeds 20%, the reference rate will be set at 10% above the lower valuation.

Addressing Disagreements

In cases where either the landowners or the transmission service provider disagrees with the proposed amount, the third valuation will be considered. The reference rate will then be determined as the average of the two lowest estimates.

Final Compensation Determination

The MRC will finalize the compensation based on the reference market rate derived from the valuers’ assessments. Additionally, the cost of professional fees paid to the valuers will be included in the compensation for the right of way (RoW) expenses.

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