The Ministry of Power has issued revised guidelines for compensation for right of way (RoW) for inter-state transmission system (ISTS) lines. Under the revised guidelines, compensation will ordinarily be based on the applicable circle rate, guideline value or stamp duty rate. Where the market rate exceeds these rates, the land value will be determined by a Market Rate Committee based on valuations by three independent land valuers empanelled by the Insolvency and Bankruptcy Board of India.
Compensation will be 200 per cent of the market value for the tower base area. For the RoW corridor, compensation will be 30 per cent of the market value in rural areas, 45 per cent in municipalities, nagar panchayats and other notified urban planning areas, and 60 per cent in municipal corporations and notified metropolitan areas.
The guidelines apply to ISTS lines with tower bases of 66 kV and above where landowners object to compensation because circle rates are below market rates, and where state governments have not specified a mechanism for determining land value. Further, actual RoW compensation paid by transmission service providers will be eligible for pass-through under Change in Law by the Central Electricity Regulatory Commission, subject to the specified conditions.
