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Amendments in the Supplementary Guidelines for payment of compensation in regard to Right of Way (ROW) for transmission lines issued by MoP on 21.03.2025 – EQ

Amendments in the Supplementary Guidelines for payment of compensation in regard to Right of Way (ROW) for transmission lines issued by MoP on 21.03.2025 – EQ

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Summary:

**1. BACKGROUND & PURPOSE**
* **Issue Identified:** Significant delays in the land valuation process for Right of Way (RoW) compensation, specifically in valuer nomination and report submission.
* **Objective of Amendment:** To streamline procedures, enforce clear timelines, and ensure a transparent, standardized, and expedited land valuation mechanism.

**2. KEY CHANGE: REVISED LAND VALUATION METHODOLOGY (Para 3)**
The core amendment replaces the previous valuation process with a structured, time-bound system.

**3. NEW PROCEDURAL FRAMEWORK**

* **A. Valuer Sourcing & Panel:**
* **Mandatory Source:** Valuers must be empanelled by the Insolvency and Bankruptcy Board of India (IBBI).
* **Location Preference:** Prioritize valuers from the project’s home state; use adjoining states if insufficient local availability.

* **B. Three-Valuer Appointment System:**
* **Trigger:** Appointments made on the same day the Monitoring & Review Committee (MRC) convenes.
* **Nomination Authority (One valuer each):**
1. Representative of the **affected landowners** (serving on MRC).
2. The **Transmission Service Provider (TSP)**.
3. The **District Magistrate (DM)**.

* **C. Strict Timeline for Submission:**
* All three appointed valuers must submit their independent valuation reports **directly to the DM within 21 days** of nomination.
* Reports must be submitted in **sealed envelopes**.

* **D. Transparent Report Selection:**
* Once all three reports are with the DM, **two reports are selected at random via a lottery system** for evaluation.
* The third report remains sealed as a contingency.

* **E. Formula-Based Reference Rate Calculation:**
* **Scenario 1 (Minor Discrepancy):** If the difference between the two selected valuations is **less than 20%** of the lower value → Reference Rate = **Average of the two**.
* **Scenario 2 (Major Discrepancy):** If the difference **exceeds 20%** of the lower value:
1. First Option: Reference Rate = **Lower Value + 10%**.
2. If disputed, the **third valuer’s report is opened**.
3. Final Reference Rate = **Average of the two lowest valuations** from all three reports.

* **F. Financial Responsibility:**
* The **TSP bears the cost** of all three valuers’ professional fees, determined through a due process.
* These fees are **incorporated into the overall RoW compensation costs**.

**4. FINAL AUTHORITY & OUTPUT**
* The calculated **Reference Market Rate** serves as the definitive basis for the MRC to determine the final market rate and compensation payable.

**5. COMPLIANCE & DISSEMINATION**
* **Immediate Action Required:** All addressed entities must adopt this amended procedure for all relevant RoW compensation cases.
* **Document Availability:** The full guidelines are to be uploaded to the MoP website by NIC.

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For more information please see below link:

Anand Gupta Editor - EQ Int'l Media Network