The Power Ministry has issued guidelines for fixing the rate for acquiring land holdings, where the market price is higher than the circle rate, for laying inter state transmission system (ISTS) lines.
These guidelines for determining compensation for laying of ISTS lines are to address the Right of Way (RoW) issues in a bid to expedite the laying for power evacuation infrastructure.
The development assumes importance as RoW is among the main reasons for the delay in laying transmission lines, particularly for evacuating renewable energy from key producing states such as Gujarat and Rajasthan.
According to a June 2026 report by Axis Securities, India added 12,139 circuit km (ckm) against a target of 15,382 ckm in FY26. The official target for transmission line was revised downwards to 15,382 ckm from 24,400 ckm in August 2025, citing right-of-way (RoW) challenges.
The Centre has proposed that the compensation in normal cases will be based on the Circle rate or Guideline value or the Stamp Act rates of the land.
However, in cases where the market rate exceeds the circle rate, the land value will be determined based on the prevailing market rate as ascertained by the Market Rate Committee (MRC) and in the manner as specified by the State Government.
The determined land value will serve as the basis for compensation and will be communicated by the respective District Magistrate or District Collector or Deputy Commissioner to the Transmission Service Provider (TSP).
The MRC will include District Magistrate as the chairperson and will include the District level officer of Registration Department, SDM of the concerned Sub Division and administrative representative of the civic body in the area. The chairperson can also co-opt up to two additional members as may be required.
However, the compensation will be paid only for transmission lines supported by a tower base of 66 kV voltage level and above, and not for sub-transmission and distribution lines below 66 kV.
“These guidelines shall apply to ISTS lines only in cases where landowners have objected to the compensation because the Circle Rates are below the Market Rates. State Governments may adopt these guidelines in their entirety or issue their own modified policy,” the Power Ministry said.
Besides, the guidelines will apply in cases where state governments are yet to specify the manner of determination of value of land. In the absence of state government policy, these guidelines issued by the central government shall apply for determining compensation, it added.
For evaluating the market rate of the land holding, the district administration will select three valuers from the list of land valuers empanelled by the Insolvency & Bankruptcy Board of India (IBBI). They should preferably be from the same state. In case there is no adequate pool of valuers in the concerned state, then they may approach adjoining states.