**Executive Summary**
This document summarizes the compensation provided for the installation of 765 KVA transmission lines in India, in response to a question raised in Lok Sabha on December 11, 2025. It outlines the guidelines for compensation related to Right of Way (RoW) and clarifies that the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, does not apply to the laying of transmission lines.
**Key Points / Main Content**
* **Compensation for Transmission Works:**
* Transmission Service Providers (TSPs) provide compensation for damages during the execution of transmission works, following respective State Government guidelines.
* **Right of Way (RoW) Compensation for Inter-State Transmission System (ISTS) lines:**
* 200% of the market value of land is provided as compensation for tower base.
* RoW corridor compensation for ISTS lines:
* 30% of market value in rural areas
* 60% of market value in municipal corporations & metropolitan areas notified by the State Government
* 45% of market value in municipalities, nagar panchayats and all other urban planning areas notified by the State Government.
* Market rate assessment is determined by a Market Rate Committee (MRC) based on independent land valuers.
* **RoW Compensation Variations:**
* RoW compensation varies from State to State. States may adopt MoP guidelines or issue modified guidelines.
* **Land Ownership and the Electricity Act, 2003:**
* The Electricity Act, 2003, specifies that land is not acquired for laying transmission lines.
* Land ownership remains with the landowner.
* **Applicability of RFCTLARR Act, 2013:**
* The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, does not apply as this act is only for permanent acquisition of private land and assets.
**Impact Analysis**
**Stakeholder: Farmers/Landowners**
* **Impact:** Determines the compensation received for land used for transmission lines and tower bases.
* **Action Required:** Understand the RoW compensation guidelines based on the State and the type of land use.
**Stakeholder: Transmission Service Providers (TSPs)**
* **Impact:** Defines the compensation requirements they must adhere to during transmission line installation.
* **Action Required:** Implement compensation guidelines as per the State Government's regulations.
**Stakeholder: State Governments**
* **Impact:** Defines the compensation requirements they must adhere to during transmission line installation.
* **Action Required:** Can adopt MOP's guidelines on ROW compensation in their entirety, or issue their own modified guidelines.
**Stakeholder: Market Rate Committee (MRC)**
* **Impact:** Assessment of market rates for land
* **Action Required:** Determination of market rate of land based on the valuation by independent land valuers.
Key Entities Referenced
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Act concerning compensation for land acquisition; determined not applicable to transmission line laying in this context.
Electricity Act, 2003: Act clarifying that land is not acquired for laying transmission lines.
Ministry of Power: Central ministry that issued guidelines for Right of Way (RoW) compensation.
765 KVA transmission lines: Type of transmission lines that is the subject of the question regarding compensation.
Inter-State Transmission System (ISTS): System for which Ministry of Power has issued guidelines for compensation regarding diminution of land value.
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.2035
ANSWERED ON 11.12.2025
COMPENSATION FOR INSTALLATION OF 765 KVA TRANSMISSION LINES
†2035. SHRI AMRA RAM:
Will the Minister of POWER
be pleased to state:
(a) the details of the compensation being provided by the Government to
the farmers against their land, trees, fruit-bearing plants, houses and tube
wells due to installation of 765 KVA transmission lines in the country, State-
wise;
(b) whether the Government proposes to increase the amount of
compensation in view of inflation, if so, the details thereof;
(c) if not, the reasons therefor;
(d) the time by which this increase would be implemented; and
(e) whether the compensation is being provided as per the Right to Fair
Compensation and Transparency in Land Acquisition Rehabilitation and
Resettlement Act 2013, if so, the details thereof and if not, the reasons
therefor?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a) to (d): The compensation for any damage caused during the execution
of transmission works is being provided by the Transmission Service
Providers (TSPs) as per the guidelines of respective State Government.
Ministry of Power has issued guidelines for payment of Right of Way
(RoW) compensation towards diminution of land value for laying Inter-
State Transmission System (ISTS) lines. As per the extant guidelines, a
compensation of 200% of market value of land for tower base has beenspecified. The compensation amount for RoW corridor has been specified
for ISTS lines as 30% of the market value of land in rural areas, 60% of the
market value of land in municipal corporations & metropolitan areas
notified by the State Government, and 45% of the market value of land for
municipalities, nagar panchayats and all other urban planning areas
notified by the State Government. Assessment of the market rate of land
is determined by a Market Rate Committee (MRC) based on the valuation
by independent land valuers.
Amount of RoW compensation varies from State to State as the
States may adopt MoP’s guidelines on RoW compensation in their entirety
or issue their own modified guidelines.
(e): As per the provisions of the Electricity Act, 2003, land is not acquired
for laying transmission line, and the ownership of land over which the
transmission line passes continues to remain with the landowner.
Since The Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013 is only
for permanent acquisition of private land and assets, the provision of the
said act is not applicable to the laying of transmission lines.
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