The Gujarat government has announced an increase in compensation for farmers whose land is used for installing electricity transmission lines and towers. The decision comes after widespread protests from farmers across the state against the previous compensation policy.
New Compensation Rates
Under the revised policy, farmers will receive higher compensation for the use of their land for power transmission infrastructure. The compensation amount has been increased by 50% compared to the earlier rates, according to a government official. The new rates apply to both existing and future projects.
Farmers will now get ₹1.5 lakh per tower for agricultural land and ₹2.5 lakh per tower for non-agricultural land, up from ₹1 lakh and ₹1.67 lakh respectively. Additionally, annual rent for land under transmission lines has been doubled to ₹15,000 per acre.
Background of Protests
Farmers in several districts, including Kutch, Banaskantha, and Mehsana, had been protesting for months, demanding fair compensation. They argued that the old policy did not adequately cover crop loss and land devaluation. The protests had disrupted several power projects in the state.
"The earlier compensation was insufficient to cover our losses. We welcome the government's decision to hike the rates," said a farmer leader from Mehsana district, who spoke on condition of anonymity.
Government's Response
The Gujarat government stated that the revised compensation aims to balance the needs of infrastructure development and farmers' welfare. Energy Minister Kanubhai Desai said, "The new policy ensures that farmers are fairly compensated for the use of their land for power transmission. We have taken into account their concerns and revised the rates accordingly."
The government has also set up a committee to address any grievances related to compensation. The committee will include representatives from the energy department, revenue department, and farmer unions.
Impact on Power Projects
The compensation hike is expected to expedite pending power transmission projects in the state. Gujarat aims to strengthen its power grid to meet growing demand and support renewable energy integration. The state has set a target of adding 30,000 MW of renewable capacity by 2030.
Industry experts believe that the new policy will reduce delays in project implementation. "Fair compensation is key to avoiding disputes and ensuring timely completion of infrastructure projects," said an energy sector analyst.
Reactions from Farmer Groups
Farmer unions have cautiously welcomed the decision but demanded further revisions. They have called for compensation to be linked to market land prices and for a one-time payment instead of annual rent. The government has assured that the committee will review these demands.
"We appreciate the hike, but it should be dynamic and based on current land values. We will continue to engage with the government for a more comprehensive policy," said a representative of the Gujarat Kisan Sangh.



