The Gujarat government announced a revision to its land‑compensation framework for power‑transmission projects on June 15 2024, following sustained protests by farmers in Morbi district who argue that the compensation offered for land used by the Rajasthan‑based Koyna–Morbi transmission line is inadequate.
The new policy, issued by the state’s Ministry of Power, replaces the earlier “Land Acquisition and Compensation Rules, 2019” with updated guidelines that increase the base rate for agricultural land by 20 % and introduce a fixed premium for land that has been cultivated for more than five years. The guidelines also mandate that compensation be paid in cash within 30 days of land acquisition and require the state to publish a transparent database of all acquisition orders and payment receipts.
The revisions come after the Morbi farmers, represented by the “Morbi Farmers’ Union,” organized a week‑long protest in the district headquarters, demanding higher compensation for plots that were earmarked for the 400‑kV high‑voltage line linking the Koyna Dam in Maharashtra to the Morbi power grid. The union cited a 2023 survey that estimated an average market value of ₹2.5 lakh per acre for the affected land, versus the ₹2.0 lakh rate that had been offered under the previous policy.
The government’s statement said that the new policy “reflects the state’s commitment to fair compensation and will help avoid future disputes.” It also noted that the policy change would be applied retroactively to all pending acquisition cases, including those in Morbi, and that a special task force would monitor implementation.
Farmers’ leaders, however, remain skeptical. “We have already delivered our land and are waiting for the promised payment,” said union chairperson Mr. Ramesh Patel, who was not quoted in the government release. He added that the 20 % increase still falls short of the market value and that the compensation process has been delayed for months.
The power transmission project is part of Gujarat’s broader plan to upgrade its grid capacity to support the state’s renewable energy targets. The state’s power department has stated that the project will reduce transmission losses by an estimated 12 % and increase the reliability of supply to industrial zones.
Analysis
The policy revision is a response to sustained public pressure and reflects a broader trend in Indian states to align land‑acquisition compensations with market realities. By retroactively applying the new rates, Gujarat may reduce the likelihood of future litigation, but it also increases the state’s fiscal burden. The effectiveness of the policy will hinge on the transparency mechanisms introduced, particularly the public database of acquisition orders.
The Morbi farmers’ agitation underscores the persistent tension between infrastructure development and rural livelihoods in Gujarat. While the government’s announcement may placate some stakeholders, the union’s continued insistence on higher compensation suggests that the dispute may not be fully resolved without further negotiation or judicial intervention.
Sources
Hindustan Times, “Gujarat revises land compensation policy for power transmission projects: Govt,” June 15 2024.
Story synopsis gathered from: Hindustan Times – India News — source
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