In a farmer-centric move, the government led by Yogi Adityanath has approved a revised compensation policy for agricultural land which is impacted by high-tension electricity transmission lines. The decision, cleared by the state cabinet, is expected to provide substantial financial relief to thousands of farmers across Uttar Pradesh. This will also facilitate the faster execution of power infrastructure projects.
Under the new framework, farmers whose land is used for installing transmission towers will now receive compensation equivalent to 200 per cent of the land’s circle rate, effectively doubling the land value payout. In addition, for the first time, the Yogi government has introduced compensation for land falling under transmission corridors, i.e., the areas where high-voltage lines pass overhead, fixing it at 30 per cent of the land value. This is a major shift from earlier policies, where such corridor-affected land often received no compensation despite restrictions on its use.
While explaining the rationale behind the decision, State Energy Minister A K Sharma said that the revised policy aims to correct the long-due imbalances and ensure that farmers are adequately compensated for both direct and indirect land usage. He pointed out that the earlier system failed to address the concerns of farmers whose land remained underutilised due to transmission lines, leading to dissatisfaction and delays in infrastructure projects.
Historically, compensation for such land in Uttar Pradesh has evolved gradually. Prior to 2018, there was no structured compensation mechanism for land either under transmission towers or within line corridors. This changed partially in 2018, when a provision was introduced to compensate farmers at around 85 per cent of the land value for the area directly occupied by tower bases. However, even after this reform, land falling under transmission corridors continued to be excluded from compensation, despite facing limitations on construction, tree plantation, and other agricultural activities.
This decision by the Yogi government has significantly expanded the scope of compensation. By increasing the payout for tower base land from 85 per cent to 200 per cent and introducing a 30 per cent compensation for corridor areas, the government has created a more comprehensive and equitable framework. Officials estimate that this revision will lead to an overall increase of 21 to 33 per cent in benefits for affected farmers compared to the earlier system.
The compensation will be calculated based on the circle rate, which is determined by the District Magistrate. This will ensure transparency and consistency across districts. The policy applies to high-voltage transmission lines of 765 kV, 400 kV, 220 kV, and 132 kV, which form the backbone of Uttar Pradesh’s power distribution network.
From an economic point of view, this decision will help increase farmers’ income by giving value to land that they cannot fully use. Land under power lines is often difficult to use because of safety rules and restrictions, which directly lowers its productivity and market value. By providing compensation based on land value, the government is trying to cover these losses and ensure farmers get fair payment.
Beyond farmer welfare, the policy is also likely to have a positive impact on the speed of infrastructure development. Land acquisition and local resistance have historically been major hurdles in executing transmission projects. With a more attractive compensation package now in place, the authorities expect greater cooperation from landowners, leading to faster completion of pending and upcoming projects. This is particularly important as Uttar Pradesh continues to expand its power infrastructure to support industrial growth, urbanisation, and rising energy demand.
