India updates compensation rules for interstate transmission right of way
The Ministry of Power has revised how landowners along interstate transmission corridors are compensated. Payments will normally be tied to local benchmark land values, with a committee using independent valuers when market prices are higher. The framework sets higher compensation for tower footprints and varying shares for corridor land, and permits transmission providers to recover actual payments through change-in-law provisions.
The Ministry of Power has changed how right-of-way payments are set for interstate transmission lines. Normally, compensation follows local circle rates, guideline values, or stamp duty rates. If market values are higher, a Market Rate Committee can rely on three independent valuers empanelled by the Insolvency and Bankruptcy Board of India.
Tower base areas receive 200% of market value. Corridor payments vary: 30% rural, 45% municipal/nagar panchayat/notified urban planning areas, and 60% municipal corporations/metropolitan areas. Rules cover 66 kV and above where landowners object and states lack a valuation mechanism. Transmission providers may pass actual payments through Change in Law.
Landowners along interstate transmission corridors may see more predictable or higher payments, especially where market values exceed local benchmarks or towers occupy land. Transmission providers could face greater upfront costs, though pass-through provisions may reduce uncertainty. If those costs flow into tariffs, electricity consumers might eventually bear some impact. State authorities and valuers may also take on clearer roles, potentially easing disputes but adding administrative work.