Gujarat revises land compensation policy
Analysis based on 13 articles · First reported Jul 03, 2026 · Last updated Jul 04, 2026
The revised compensation policy by India — Gujarat is expected to increase costs for power transmission projects, potentially impacting the profitability of utility companies operating in the region. However, it may also reduce project delays due to farmer protests, leading to more stable project execution and improved investor confidence in the long run.
The India — Gujarat government has significantly revised its compensation policy for farmers whose land is used for electricity transmission lines and power towers. The new policy replaces the earlier jantri-based compensation with payments calculated at twice the prevailing market value of the land. Additionally, all compensation will now be paid upfront before the commencement of work, instead of in three instalments. The compensable area for power transmission towers has also been increased to include an additional one meter on all four sides of the tower base. A Market Rate Committee (MRC) will be constituted to ensure transparent determination of land values, including representatives of affected landowners and farmers. The policy also specifies compensation rates for the Right of Way corridor based on market value and extends benefits to ongoing projects where compensation was previously determined under older rates. This decision was led by Chief Minister Bhupendrabhai Patel and involved ministers Jitubhai Vaghani, Rushikesh Patel, and Kaushikbhai Vekariya.
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