Ministry Of Power Revises Row Compensation Guidelines For Faster Land Valuation

The Ministry of Power has introduced important changes to the supplementary guidelines for Right of Way (RoW) compensation for transmission lines. These amendments, issued on December 15, 2025, focus on improving the process of land valuation, which has often been delayed due to the slow appointment of valuers and the late submission of their reports. The updated rules aim to streamline the procedure and ensure the timely determination of compensation for affected landowners.

Under the revised guidelines, the Market Rate Committee (MRC) must now appoint land valuers who are empanelled with the Insolvency and Bankruptcy Board of India (IBBI). To ensure proper understanding of local land values, the guidelines recommend that these valuers be from the same state as the land in question, or if necessary, from neighboring states. A notable procedural change is that the MRC is required to appoint three different valuers on the very day it meets. These valuers are nominated by three separate parties: the landowners, the Transmission Service Provider (TSP), and the District Magistrate (DM). Importantly, the landowner representative must be an affected landowner themselves.

Once appointed, all three valuers are required to submit their sealed reports directly to the District Magistrate within 21 days. After receiving all reports, the District Magistrate will select two of them through a lottery system for opening and review. The new methodology for determining the reference market rate is clearly defined based on the difference between the two selected valuations. If the difference is less than 20% of the lower value, the average of the two is taken as the reference rate. However, if the difference exceeds 20%, the reference rate is automatically set at 10% higher than the lower valuation.

In cases where the 10% adjustment is not accepted, the third valuer’s report is opened, and the reference rate is calculated by averaging the two lowest valuations among the three. This assessed rate forms the official basis for the MRC to determine the final market rate for compensation. Regarding costs, the Transmission Service Provider is responsible for paying professional fees to all three valuers, and these fees are included in the total RoW compensation amount.

The Ministry has circulated these amendments to all State Chief Secretaries, power utilities, and relevant national energy agencies to ensure that they are implemented immediately. By defining a clear and expedited process for land valuation, these changes aim to reduce delays and make the determination of RoW compensation more transparent and efficient. The revised system provides clarity to both landowners and transmission developers, ensuring the timely resolution of disputes and proper compensation based on fair market rates.

This approach reflects a broader effort by the government to strengthen infrastructure development while addressing the concerns of affected landowners in a structured and transparent manner.