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Ministry of Power Introduces New Guidelines to Boost Compensation for ISTS Transmission Line Landowners

In a landmark move, the Ministry of Power (MoP) has rolled out Supplementary Guidelines to address long-standing concerns of landowners affected by the development of Interstate Transmission System (ISTS) lines. The updated policy focuses on ensuring fair compensation for Right of Way (RoW), marking a significant shift in the government’s approach to balancing infrastructure growth with landowner rights.

Key Features of the Guidelines

1. Market Rate Determination

   A Market Rate Committee (MRC), comprising the District Collector/Magistrate (DC/DM), landowners, Transmission Service Providers (TSPs), and other stakeholders, will now oversee the valuation process. The MRC will rely on assessments from independent land valuers to establish the market rate of affected land.

2. Land Valuation Process

   To ensure transparency, the MRC will appoint two independent valuers—one selected by the TSP and the other by a landowners’ representative. These experts will jointly determine a reference market rate, which will form the foundation for final compensation calculations.

3. Revised Compensation Structure

   • Tower Base: Compensation remains at 200% of the land value, consistent with previous guidelines.
   • RoW Corridor: New rates have been set based on location—30% of the land value in rural areas, 60% in municipal corporations and metropolitan regions, and 45% in other urban planning zones.

4. CERC Pass-Through Provision

   The Central Electricity Regulatory Commission (CERC) will allow any additional RoW compensation paid by TSPs—beyond the base amount outlined in the Tariff Based Competitive Bidding (TBCB) ISTS scheme—to be passed through under Change in Law (CIL) provisions, ensuring financial viability for developers.

A Step Toward Equity

These guidelines aim to streamline compensation disputes and foster smoother implementation of critical transmission projects. By incorporating market-driven valuation and higher compensation rates, the MoP seeks to strike a balance between accelerating India’s energy infrastructure and addressing the grievances of landowners impacted by ISTS development.