Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

Power Ministry Revises RoW Compensation Framework to Speed Up Valuation for Transmission Lines

The Ministry of Power (MoP) has updated its Right of Way (RoW) compensation guidelines for transmission projects, introducing a clearer and time-bound land valuation mechanism aimed at reducing procedural delays and accelerating project execution.

The revised provisions amend the supplementary guidelines issued on March 21, 2025, following observations that delays in nominating land valuers and submitting valuation reports to District Magistrates (DMs) were slowing down transmission project timelines. According to the Ministry, these bottlenecks were impacting the timely rollout of critical grid infrastructure.

To address these challenges, the Ministry has modified Paragraph 3 of the guidelines, laying down a standardised and deadline-driven valuation process. Under the amended framework, the Member of the Regional Committee (MRC) will now appoint land valuers empanelled with the Insolvency and Bankruptcy Board of India (IBBI). Preference will be given to valuers from the same state, while professionals from neighbouring states may be considered if an adequate local pool is unavailable.

The revised process mandates the appointment of three valuers on the same day the Regional Committee meets—one nominated by the affected landowners, one by the Transmission Service Provider (TSP), and one by the District Magistrate. To ensure timely closure, the appointed valuers must submit their valuation reports in sealed envelopes directly to the District Magistrate within 21 days of nomination.

Once all three valuation reports are received, two reports will be selected through a lottery process for determining the reference market rate. The guidelines also introduce a structured approach to handling valuation variations. If the difference between the two selected valuations is less than 20 percent above the lower value, the average of the two will be adopted as the reference market rate. If the difference exceeds this threshold, the reference rate may be fixed at 10 percent higher than the lower valuation.

In cases where this outcome is not acceptable, the third valuation report will be considered, and the reference market rate will be determined as the average of the two lowest valuations, the notification clarified.

The final reference market rate will be approved by the Regional Committee and used as the basis for determining RoW compensation. The guidelines also specify that all valuers will receive equal professional fees, paid by the TSP through a defined process, with these costs included as part of the overall RoW compensation package.

The Ministry stated that the revised framework is expected to minimise procedural delays, improve transparency, and expedite compensation settlements, thereby supporting the faster development of transmission infrastructure essential for integrating renewable energy and meeting India’s growing electricity demand.