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Double compensation for land used for electricity transmission towers

Updated on: 13 October,2022 10:30 AM IST  |  Mumbai
Dharmendra Jore | dharmendra.jore@mid-day.com

State cabinet approves new policy, aims to expedite electricity transmission projects that are delayed due to land issues

Double compensation for land used for electricity transmission towers

The city is expected to get more power lines to meet its increasing demand. Representation pic

The state government has revised the compensation policy for owners who part with their agricultural or non-agricultural land for constructing high-power electricity transmission lines. The move is expected to expedite transmission projects that have been delayed because of land issues.


The state cabinet approved a new policy on Wednesday in which the rate of compensation has been doubled and linked to ready reckoner and market prices. The high-power transmission lines have two major components—towers and hanging wires—that affect the land below. They carry power from generation centres to the substations from where it is passed on to consumers. The corridors pass through difficult terrain, farms, urban and rural pockets.


More power to Mumbai


Mumbai has such lines and the city is expected to get more to meet its increasing demand. The city has faced its worst ever power breakdowns in the past two years. The failures prompted the government to expedite the delayed projects and plan new ones to bring more power to the city.

The new policy is applicable in Mumbai City, Mumbai Suburban and the rest of Maharashtra. Projects in the pipeline, those approved already, and those in different stages of construction will benefit immediately from the policy. 

Under the policy, land is not acquired and transferred in the name of the project, but used against cash compensation for crop damages and reduction of cultivable area. Land owners, including farmers, have not been happy with the meagre compensation and have refused permission for new lines.

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“Transmission projects will gather pace. The new policy is applicable to the lines of 66kV and above capacity,” said the Chief Minister’s Office.

The calculations

The compensation for area needed for tower construction will be calculated on ready reckoner rate or sales deeds in the past three years, and the higher figure among them considered for award. The owner will get double of the approved rate for the land. For the land below hanging wires, an extra 30 per cent of the RR or average market rate will be offered.

The local sub-divisional committee will be empowered to assess compensation in exceptional/disputed cases. The energy secretary will head a state-level committee to sort difficulties in implementation of the policy, if any.

Farmers and land owners have been barred from building structures under the transmission line. Compensation for crop damages will be given as per the current policy. The compensation amount will be directly transferred to the owner’s bank account.

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