Date: 2026-01-30Category: Not ApplicableState: Union GovernmentCountry: India
Amendments in the Supplementary Guidelines for payment of compensation in regard to Right of Way (ROW) for transmission lines issued by MoP on 21.03.2025
**Executive Summary**
This document outlines amendments to the Supplementary Guidelines issued by the Ministry of Power (MoP) on March 21, 2025, regarding compensation for Right of Way (RoW) for transmission lines. The amendments address delays in the land valuation process. The new guidelines are effective immediately and require action from the MRC, landowners and District Magistrate.
**Key Points / Main Content**
* **Land Valuation Methodology Changes:**
* The MRC (Market Rate Committee) must engage land valuers empanelled by the Insolvency and Bankruptcy Board of India (IBBI) from the IBBI website. Valuers should preferably be from the same or adjoining states.
* The MRC shall appoint three valuers - one each nominated by the representative of landowners, Transmission Service Provider (TSP) and District Magistrate (DM) - on the same day that the MRC meets.
* The representative of landowners in the MRC shall be from among the affected landowners.
* **Report Submission and Selection:**
* Nominated valuers must submit sealed reports directly to the DM within 21 days of their nomination by the MRC.
* After receiving all three reports, the DM will open two reports selected by lottery.
* **Reference Market Rate Determination:**
* If the difference between the selected market rates is less than 20%, the average of the two valuations is the reference market rate.
* If the difference exceeds 20%, the reference market rate is determined as 10% higher than the lower valuation. If this is not agreeable, the report of the third valuer shall be considered, and the reference market value shall be determined as the average of the two lowest valuations.
* **Other Provisions:**
* The assessed reference market rate will serve as the basis for determining the market rate by the MRC.
* Land valuers will be paid equal professional fees/charges by the TSP as determined by the TSP. These charges form part of the RoW compensation cost.
**Impact Analysis**
**Stakeholder: MRC (Market Rate Committee)**
* **Impact**: The MRC's role is redefined in land valuer selection and appointment, emphasizing IBBI-empanelled valuers and the immediate appointment of three valuers on the same day that the MRC meets.
* **Action Required**: Ensure all valuers are selected from the IBBI panel and coordinate the simultaneous appointment of valuers nominated by landowners, TSP, and the DM.
**Stakeholder: Landowners**
* **Impact**: Landowners will have to ensure that a representative is selected from among the affected landowners to participate in the MRC. They can nominate a valuer and will be represented on the MRC.
* **Action Required**: Appoint a landowner representative to the MRC and participate in the valuer nomination process.
**Stakeholder: District Magistrate (DM)**
* **Impact**: The DM is now responsible for receiving sealed valuation reports, selecting two reports via lottery, and communicating the reference market rate based on the guidelines.
* **Action Required**: Establish a process for receiving sealed reports, conducting the lottery, and determining the reference market rate according to the amended guidelines.
**Stakeholder: Transmission Service Provider (TSP)**
* **Impact:** The TSP will need to cover the land valuers’ professional fees.
* **Action Required**: Ensure land valuers are paid equal professional fees/charges and follow due process when determining said fees.
Key Entities Referenced
Ministry of Power: The Indian government ministry responsible for power sector development.
Supplementary Guidelines for payment of compensation in regard to Right of Way (RoW) for transmission lines: Guidelines issued by the Ministry of Power regarding compensation for RoW related to transmission lines, amended in this document.
MRC (Market Rate Committee): Committee established to determine land valuation and compensation related to Right of Way (RoW) for transmission lines.
Insolvency and Bankruptcy Board of India (IBBI): The board whose list of empanelled land valuers is to be used by the MRC.
District Magistrate (DM): Local official involved in the land valuation and compensation process, especially regarding the submission and selection of valuation reports.
To
Bt
F.No. 3/4/2016-Trans-Part(4)
Government of India
Ministry of Power
Shram Shakti Bhavan, New Delhi —110 001.
waRK
Dated: 15.12.2025
. Chief Secretaries/Administrators of all the States/UTs.
Chairperson, CEA, New Delhi — with a request to disseminate the subject
guidelines to all the stakeholders.
Additional Chief Secretaries/Principal Secretaries/Secretaries of Energy of all
States/UTs.
Oot Secretary, CERC, New Delhi.
CMD, Grid India, New Delhi.
COO, CTUIL, Gurugram.
CMDs of State Power Utilities/SEBs.
All Transmission Licensees through COO, CTUIL
Subject: Amendments in the Supplementary Guidelines for payment of
compensation in regard to Right of Way (RoW) for transmission lines
issued by MoP on 21.03.2025 — reg.
Sir,
The Ministry of Power has issued Supplementary Guidelines for payment of
compensation in regard to Right of Way (RoW) for transmission lines on 21.03.2025.
2. It has come to notice of this Ministry that there have been instances where the
land valuer nomination by the representative of landowners and submission of
valuation reports to the District Magistrate is taking long time.
3. In view of this, para 3 of the said guidelines is hereby amended as under:
3. Land Valuation Methodology:
(1) | The MRC shall engage the land valuers empanelled by the Insolvency
and Bankruptcy Board of India (IBBI) as per the list available at website of IBBI
(https://ibbi.gov.in). The valuers should preferably be from the same State or,
if an adequate pool of valuers is not available, from adjoining States.
(2) MRC shall appoint three (3) valuers - one each nominated by
representative of landowners, Transmission Service Provider (TSP) and District
Magistrate (DM) - on the same day the MRC meets.
Page 1 of 2(3) | The representative of the landowners in the MRC shall be from among
the affected landowners.
(4) | The nominated valuers shall submit their reports in sealed envelopes
directly to the DM within 21 days of their nomination by the MRC. After all three
reports are received by the DM, two reports shall be opened by selection
through lottery system.
(5) The reference market rate shall be determined as specified below:
(i) If the difference in the market rates worked out by the selected
valuers is less than 20% over the lower value, then average value of the
two valuations shall be taken as the reference market rate.
(ii) If the difference exceeds 20%, then the reference market rate
may be determined as 10% higher than the lower valuation. If this is not
agreeable, then the report of the third valuer shall be considered, and
the reference market value shall be determined as the average of the
two lowest valuations.
(6) The assessed reference market rate shall serve as the basis for
determination of market rate by the MRC.
(7) The land valuers shall be paid equal professional fee/charges by the
TSP as found out by the TSP through due process. These charges shall form
part of the RoW compensation cost.
Yours faithfully,
MVN Vaho Trach
(M.V.N. Vara Prasad)
Under Secretary (Trans-ll)
Tele: 011- 23730264
Copy to:
1. Secretaries to the Government of India.
2. Prime Minister's Office.
3. Technical Director, NIC, Ministry of Power — with the request to upload on the
website of Ministry of Power.
Oak PS to MoP.
Addl. PS to MoSP.
Sr. PPS/ PPS/ PS to Secretary (Power)/ AS(Trans)/ AS (IC)/ JS&FA / All Joint
Secretaries/ EA/ All Directors/ Deputy Secretaries, Ministry of Power.
Page 2 of 2