Maharashtra Boosts Compensation for Affected Farmers

The Maharashtra government has reaffirmed its commitment to protecting farmers whose land is affected by electricity transmission projects. The state has announced that power transmission towers and overhead transmission lines will only be installed after ensuring fair compensation under its revised policy. Officials say the updated rules are designed to offer higher payouts while allowing farmers to retain ownership of their land and continue farming activities.

State Revises Compensation Rules, Protects Farmers’ Land Ownership and Appeal Rights

The assurance was given by Minister of State for Energy Meghna Sakore-Bordikar while responding to a Calling Attention motion raised by MLA Sunil Shelke in the Maharashtra Legislative Assembly. The government stated that the revised policy reflects its efforts to balance the state's growing electricity infrastructure needs with the interests of farmers.

Compensation Based on the Highest Land Value

According to the minister, Maharashtra's 2022 compensation policy offers one of the most farmer-friendly frameworks introduced so far for power transmission projects.

Under the current guidelines, compensation for land occupied by electricity transmission towers is calculated using whichever value is highest among:

• The prevailing market value of the land
• The government ready reckoner rate
• The highest average land transaction value recorded in the village during the previous three years

This approach is intended to ensure that farmers receive compensation based on the most beneficial land valuation available instead of a single fixed benchmark.

In addition, farmers whose land falls beneath overhead transmission corridors are entitled to compensation equal to 30% of the applicable land value, even though they continue to own and use the land.

Compensation Policy Has Improved Over the Years

The Maharashtra government highlighted how its compensation policy has evolved over the last decade.

Before 2010, farmers affected by power transmission projects did not receive any compensation. The first policy introduced in 2010 provided compensation ranging between 25% and 65% of the market value, depending on the project.

The policy was strengthened again in 2017. Under those rules, compensation for transmission tower locations was increased to twice the ready reckoner rate, while land beneath transmission lines became eligible for compensation equal to 15% of land value.

The latest revision, introduced in 2022, further increased compensation for transmission corridors from 15% to 30%, significantly improving financial support for affected landowners.

The government says these continuous revisions demonstrate its effort to make infrastructure development more equitable for rural communities.

Farmers Continue to Own and Use Their Land

One of the key features of the current policy is that power transmission projects do not require permanent land acquisition in most cases.

Instead, farmers retain full ownership of their land even after transmission towers and overhead power lines are installed. They are also allowed to continue agricultural activities beneath the transmission lines, helping reduce the long-term impact on farming operations.

This provision aims to strike a balance between expanding Maharashtra's electricity transmission network and protecting agricultural livelihoods.

District Committees to Decide Compensation

The state government has also established a structured process to determine compensation amounts.

District-level committees, headed by the respective District Collectors, are responsible for assessing compensation based on the approved guidelines.

Farmers who disagree with the compensation amount have the right to file an appeal within 30 days of the decision. The government has directed that such appeals should ideally be resolved within 60 days, providing a defined timeline for grievance redressal.

Officials believe this transparent process will improve confidence among landowners affected by future transmission projects.

Government Shares Compensation Example

To explain how the revised policy works in practice, Minister Meghna Sakore-Bordikar cited compensation figures from Khujgaon Khurd village.

According to the government:

• Compensation for land occupied by transmission towers has been fixed at ₹3,997.66 per square meter.
• Land located beneath transmission lines is eligible for ₹599.65 per square meter.

These figures illustrate how compensation is calculated under the updated framework while allowing farmers to continue using their land.

Additional Protection for Small and Tribal Farmers Under Review

The Maharashtra government also acknowledged concerns raised about land belonging to small and tribal farmers, particularly in districts where power transmission infrastructure is expanding.

The minister informed the Assembly that discussions will be held with the District Collectors of Palghar and Thane to review issues related to land damage and explore additional safeguards wherever necessary.

Officials said the government remains committed to improving compensation practices while addressing challenges faced by vulnerable farming communities.

Balancing Infrastructure Growth with Farmers’ Interests

As Maharashtra continues expanding its electricity transmission network to meet rising power demand, the revised compensation policy is expected to play an important role in reducing conflicts over infrastructure projects.

By linking compensation to the highest applicable land value, preserving land ownership, allowing continued agricultural use, and providing a formal appeal process, the government aims to ensure that development projects move forward without compromising farmers' rights.

The latest assurance in the Legislative Assembly reinforces Maharashtra's focus on combining infrastructure expansion with stronger protections for landowners affected by power transmission projects.