Gujarat revises compensation after farmers' protests over Adani project

The Gujarat government has revised its compensation policy for farmers whose land is used for electricity transmission lines and towers as part of an Adani Group project, linking payouts to the prevailing market value instead of the jantri rate and introducing full upfront payment before work begins, following sustained protests by farmers over the earlier compensation regime.

Farmers in several parts of the state had been protesting against the policy of installing electricity transmission lines and poles on agricultural land, arguing that the compensation offered was inadequate.

Announcing the changes on Friday, the government said compensation for transmission lines passing through farmland had so far been calculated at 200 per cent of the jantri value. Responding to long-standing representations from farmer organisations, it has now decided to calculate compensation at twice the prevailing market value of the land.

The jantri rate is the government-notified benchmark value used for land and property transactions in Gujarat.

The government has also enhanced compensation for land occupied by electricity transmission towers.

Earlier, compensation was calculated only on the actual base area covered by the tower. Under the revised policy, the compensable area will include an additional one metre on all four sides of the tower base, increasing the amount payable to landowners.

In another significant change, the government has scrapped the staggered payment system under which compensation was released in three instalments — 40 per cent during foundation work, 40 per cent during tower installation and the remaining 20 per cent after transmission lines were strung.

Under the new policy, farmers will receive 100 per cent of the compensation before work on the project begins.

To ensure transparency in determining land values, the government will set up a market rate committee (MRC) to assess the prevailing market value of land. The committee will comprise the district collector, representatives of affected landowners, a market valuer nominated by farmers and representatives of the transmission service provider.

Compensation for land falling within the right of way (RoW) corridor of transmission lines will also be linked to the market value determined by the MRC.

According to the revised policy, farmers in rural areas will receive compensation equivalent to 30 per cent of the assessed market value, those in municipal council areas will receive 45 per cent and those within municipal corporation limits will be paid 60 per cent.

The government said the revised policy will also benefit farmers whose compensation was assessed under the previous norms but whose transmission line projects are still under execution. Such landowners will be eligible to receive compensation under the new rates.

This version brings the protests into the lead so the policy change is clearly framed as a response to farmers' agitation rather than merely coinciding with it.

With PTI inputs