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					</table><p>The <a href="https://gujaratindia.gov.in/Index" target="_blank" rel="noopener">Gujarat government</a> has announced a new compensation policy under which farmers will be paid twice the prevailing market value of their land acquired for erecting power transmission towers and power lines.</p>
<p>The new policy replaces the circle rates-based system.</p>
<p>The state government has also increased the compensable area of land acquired for the transmission towers. An additional one meter on all four sides of the tower base will be taken into consideration for calculating the compensation.</p>
<p>For example, for 765 kV lines, compensation was previously based on 625 square meters. This will be increased to 729 square meters.</p>
<p>Under the earlier policy, compensation was being paid to landowners in tranches: 40% at the foundation stage, 40% at the time of erection and 20% after wiring. Under the new policy, the full compensation will be paid in advance.</p>
<p>Compensating landowners for acquiring land for transmission lines and towers and right-of-way (RoW) approvals have been a major impediment for the speedy implementation of transmission projects. The issue was also discussed by industry experts at the recently concluded <a href="https://www.mercomindia.com/event/mercom-india-renewables-summit-2026" target="_blank" rel="noopener">Mercom India Renewables Summit 2026.</a></p>
<p>Highlighting the gravity of the problem, R.K.Tyagi, Director General at Power Foundation of India, said, “A 1,000 km transmission line may require around 3,000 towers. Even if 2,999 towers are ready, one unresolved tower location can block the entire line. In such cases, investment worth ₹4,000 crore to ₹5,000 crore can remain stuck because one tower cannot be constructed.”</p>
<p>According to Ministry of Power guidelines, interstate transmission system (ISTS) developers must <a href="https://www.mercomindia.com/ists-developers-to-pay-60-of-the-urban-land-value-as-row-compensation" target="_blank" rel="noopener">pay</a> 60% of the land value for municipal corporations and metropolitan area land parcels as compensation for securing RoW. The ministry had issued supplementary guidelines last year for determining the market rate and compensation for ISTS lines to resolve challenges hindering transmission projects.</p>
<p>In March last year, the government <a href="https://www.mercomindia.com/right-of-way-issues-hit-14-interstate-transmission-projects" target="_blank" rel="noopener">informed</a> Parliament that 14 ISTS projects were facing prolonged RoW issues, primarily due to the demand for higher compensation over and above the rates set by the state governments.</p>


Gujarat Hikes Compensation for Land Acquired for Power Transmission Towers


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					</table><p>The National Committee on Transmission (NCT) has approved revisions to the implementation timelines of several transmission projects currently under bidding with the Central Transmission Utility of India (<a href="https://ctuil.in/" target="_blank" rel="noopener">CTUIL</a>), highlighting delays in many interstate transmission system (ISTS) projects that were originally planned with shorter implementation schedules.</p>
<p>At a recent meeting of the committee convened by the Central Electricity Authority (CEA), CTUIL suggested benchmarking and standardizing more realistic timelines for transmission projects to give clarity to renewable energy developers. Such an alignment was crucial to avoid situations in which generation capacity is ready, but evacuation infrastructure is delayed.</p>
<p>However, the meeting concluded that standardizing timelines would not work, as on-the-ground challenges vary from project to project; therefore, schedules must be assessed on a case-by-case basis. It held that while realistic timelines were important for project planning, flexibility was necessary given the diverse challenges encountered in developing transmission infrastructure.</p>
<p>Stakeholders noted that right-of-way (RoW) challenges, land acquisition hurdles, and difficult terrain vary significantly across projects, making a uniform timeline for all transmission programs impractical.</p>
<p>CTUIL said that historically, many transmission projects were given 24-month completion timelines to align with the relatively short construction periods of renewable energy projects. In difficult terrains or complex project environments, timelines of 30–36 months were sometimes considered.</p>
<p>Projects hit by implementation challenges on the ground include the Narela substation, the Khetri–Narela 765 kV double-circuit transmission line, the Fatehgarh-IV pooling station and associated lines, and the Ahmedabad–Navsari 765 kV line.</p>
<p>Following the discussion, NCT revised the implementation timeline for the Tumkur-II transmission strengthening project to integrate 2.7 GW of renewable energy, extending it from 24 to 36 months due to anticipated RoW challenges.</p>
<p>The timelines for the Kurnool-IV Phase-II transmission system and the Krishnagiri Renewable Energy Zone Phase-I integration scheme were also revised to 36 months.</p>
<p>According to recent CEA data, India <a href="https://www.mercomindia.com/transmission-line-additions-in-9m-fy-2026-meet-less-than-half-the-target" target="_blank" rel="noopener">achieved</a> 5,077 circuit kilometers (ckm) of power transmission lines between April and December in the financial year 2025–26, accounting for only 47.5% of the cumulative target of 10,696 ckm set for the period.</p>
<p>The industry has also <a href="https://www.mercomindia.com/supply-chain-shortages-and-inflation-delay-power-transmission-projects" target="_blank" rel="noopener">attributed</a> transmission project delays to supply chain shortages and higher procurement costs, driven by high demand for transformers and other critical transmission components.</p>


NCT Revises Timelines for Interstate Transmission Projects Under Bidding


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					</table><p>Fourteen interstate transmission system (ISTS) projects are facing prolonged right-of-way (RoW) issues, mainly because of the demand for higher compensation compared to rates determined by state governments.</p>
<p>Other reasons for transmission project challenges include delays in forest clearances, Minister of State for Power Shripad Naik told the Rajya Sabha.</p>
<p>Eight of the 14 projects facing delays due to RoW issues are being implemented by POWERGRID, and six by private companies Adani, Sterlite, Tata Power, and ReNew. These projects are spread across several states.</p>
<p>To address the demand for higher compensation, the <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> <a href="https://www.mercomindia.com/compensation-guidelines-transmission-line" target="_blank" rel="noopener">revised</a> the guidelines for payment of RoW compensation for laying transmission lines in June 2024. Per these guidelines, the land rate has been linked to the market rate. Compensation amounts for the tower base area and RoW corridor have been increased to 200% and 30% of the land value, respectively.</p>
<p>The compensation guidelines apply to transmission lines supported by tower bases with a voltage level of 66 kV and above, excluding sub-transmission and distribution lines below 66 kV.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-77501 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/RoW-article-picture.png" alt="RoW article picture" width="834" height="860" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/RoW-article-picture.png 834w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/RoW-article-picture-291x300.png 291w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/RoW-article-picture-768x792.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/RoW-article-picture-650x670.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/RoW-article-picture-624x643.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/RoW-article-picture-600x619.png 600w" sizes="auto, (max-width: 834px) 100vw, 834px" /></p>
<p>&nbsp;</p>
<p>Replying to a question on the impact of these delays on renewable energy integration into the grid, the minister said suitable alternative arrangements are made wherever feasible for evacuating renewable energy by utilizing margins in the existing transmission network.</p>
<p>Route alignment before approval of projects is being validated on the PM Gati Shakti portal to overcome RoW challenges in transmission projects. This helps optimize the route and corridor widths, particularly in forest and urban areas.</p>
<p>The Ministry of Power is actively utilizing the Project Monitoring Group under the Department for Promotion of Industry and Internal Trade to resolve bottlenecks in transmission projects and coordinate with transmission service providers, state governments, and Union ministries to expedite resolution.</p>
<p>Projects to evacuate renewable energy across India are <a href="https://www.mercomindia.com/renewable-capacity-growth-severely-hit" target="_blank" rel="noopener">struggling</a> to keep pace with solar and wind capacity additions, which are rising in recent years.</p>
<p>Besides RoW issues, landholder opposition, litigation, and delays in obtaining forest, wildlife, and tree-cutting approvals are among the key challenges that delay transmission project commissioning. Project developers frequently cite transmission infrastructure as a major cause of delays in solar project commissioning.</p>


Right-of-Way Issues Hit 14 Interstate Transmission Projects


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					</table><p>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> has issued new guidelines addressing the payment of Right of Way (RoW) compensation for transmission lines, including those in urban areas. These guidelines aim to streamline transmission line construction and ensure timely completion by effectively addressing RoW issues.</p>
<p>The compensation guidelines apply to transmission lines supported by tower bases with a voltage level of 66 kV and above, excluding sub-transmission and distribution lines below 66 kV.</p>
<p>The District Magistrate, District Collector, or Deputy Commissioner will determine the compensation.</p>
<p><strong>Determination of Compensation</strong></p>
<p>Compensation is based on the circle rate, guideline value, or Stamp Act rates of the land. If the market rate exceeds these values, the land value is determined based on the prevailing market rate, as ascertained by the District Magistrate, District Collector, or Deputy Commissioner. This determined land value serves as the basis for compensation and is communicated by the respective authority.</p>
<p>The compensation for the tower base area is set at 200% of the land value. The tower base area includes the area enclosed by the tower&#8217;s four legs at ground level, plus an additional one-meter extension on each side.</p>
<p>Compensation for the RoW corridor is 30% of the land value. The land within the RoW corridor, defined in Schedule VII of the Central Electricity Authority (Technical Standards for Construction of Electrical Plants and Electric Lines) Regulations, 2022, is eligible for this compensation. This amount addresses the potential reduction in land value due to the presence of overhead lines or underground cables.</p>
<p>No construction activity would be permitted within the RoW of the transmission line. States can decide on higher rates depending on the area and urgency of the work.</p>
<p>In areas where landowners accept other compensation methods, such as through the states&#8217; and union territories&#8217; transfer of development rights policy , the licensee or utility must deposit the compensation amount with the relevant corporation, municipality, local development authority, or the state government.</p>
<p>In areas with RoW constraints, various technologies can be employed to optimize space usage. These include steel pole structures, narrow-based lattice towers, multi-circuit and multi-voltage towers, single-side stringing with lattice or steel poles, cross-linked polyethylene underground cables, gas-insulated lines, compact towers with insulated cross-arms, and voltage source converter-based high-voltage direct current systems.</p>
<p><strong>Landowner Identification </strong></p>
<p>During the check survey at the execution stage, the names of landowners whose property falls within the transmission line&#8217;s RoW are documented. This process adheres to Regulation 8a(B) of the Central Electricity Authority (Technical Standards for Construction of Electrical Plants and Electric Lines) Regulations, 2022.</p>
<p>Compensation payment is one-time and upfront, with digital payment methods such as the Aadhaar-Enabled Payment System and Unified Payments Interface being preferred.</p>
<p><strong>Standard Operating Procedure </strong></p>
<p>States, union territories, and transmission developers should refer to the following standard operating procedure for detailed guidelines on implementing these compensation measures:</p>
<ul>
<li>The Transmission Service Provider (TSP) is responsible for identifying the landowners and issuing the notice to proceed. The TSP will then collect necessary documents from the landowners, such as proof of identity and ownership.</li>
<li>Revenue officials will verify land records against revenue maps. In cases involving multiple landowners, the TSP must obtain a no-objection certificate from all co-owners, which needs to be attested by the sarpanch and the revenue office.</li>
<li>The TSP will measure the tower footing and corridor area in the presence of landowners, obtaining their signatures along with those of revenue officials. If there are grievances related to land rates, the district magistrate or an authorized magistrate will issue orders to resolve the matter and fix the compensation.</li>
<li>The TSP is responsible for compensation, which covers tower footing, corridor surface, working area, and access roads. The compensation includes any permanent and temporary structures such as hutments, houses, and line shifting based on the assessment. The measurement sheet must be verified by the project RoW lead and countersigned by the landowner and the concerned revenue officials.</li>
<li>Finally, the TSP will disburse the payment and collect receipts from the landowners, ensuring all transactions are appropriately documented and acknowledged.</li>
</ul>
<p>States can adopt these guidelines entirely or issue modified guidelines. In the absence of state-specific guidelines, the guidelines issued by the central government will apply.</p>
<p>Disputes over right of way and difficulties in land acquisition are often <a href="https://www.mercomindia.com/india-needs-uniform-land-acquisition-policy" target="_blank" rel="noopener">cited</a> as challenges coming in the way of faster development of renewable energy projects.</p>
<p>Mercom had also <a href="https://www.mercomindia.com/renewable-projects-bogged-down-by-transmission/" target="_blank" rel="noopener">reported</a> that achieving India’s clean energy goals would be difficult if transmission infrastructure does not keep pace with the rise in connectivity applications due to a surge in renewable energy installations. Stakeholders had said cross-country transmission lines encounter right-of-way issues, among others.</p>
<p>Subscribe to Mercom&#8217;s real-time <a href="https://www.mercomindia.com/product/mercoms-renewable-energy-regulatory-updates" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don&#8217;t miss any critical updates from the renewable industry.</p>


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