Gujarat Farmers Rejoice as Govt Scraps Jantri, Approves Double Market Rate Compensation for Power Towers & Lines

Gandhinagar: In a landmark decision that promises to end years of farmer discontent, the Gujarat government has announced a major overhaul in compensation for land used in erecting electricity transmission towers and high-tension lines. Farmers will now receive compensation calculated at double the current market value of their land, effectively scrapping the long-criticized Jantri-based valuation system that relied on outdated 2011 rates.

The move comes as a significant relief for thousands of farmers across the state, particularly in districts like Surendranagar and Morbi, where protests had intensified in recent months over inadequate payouts. The decision was announced by government spokesperson and minister Jitu Vaghani.

Key Changes in the New Policy

• Double Market Rate Instead of Jantri: Previously, compensation was fixed at double the Jantri rate (for example, ₹382 per square meter in Kondh village, Dhrangadhra taluka). Farmers had rejected these rates as they were far below real market values — in some cases, a bigha of land valued at ₹15-16 lakh in the open market was being compensated with barely ₹2 lakh under the old system.
• Market Rate Committee (MRC) for Fair Valuation: A dedicated committee headed by the District Collector will now determine the current market rate. The panel will include three registered valuers from the Government of India, representatives of affected farmers, and officials from the concerned power company. All stakeholders will discuss and finalize rates face-to-face, reducing disputes and the need for prolonged legal battles.
• Extra Area & Location-Based Enhancements: Compensation calculations will now include an additional 1-meter area around the tower base (especially beneficial in rural zones). On top of the double market rate, farmers will receive location-based multipliers:
• Rural areas: +30%
• Municipal areas: +45%
• Metropolitan areas: +60%
• Full Upfront Payment: The earlier practice of paying in installments (40-40-20) has been replaced with 100% upfront payment, ensuring farmers receive the full amount without delays.
• Retroactive Benefit: Farmers who had already received compensation under the old Jantri system but where work on the transmission lines is still ongoing will also be eligible for the revised higher rates.

Addressing Farmer Protests

The decision directly addresses the grievances that had led to strong protests in Surendranagar (including Kondh village in Dhrangadhra taluka) and Morbi districts. Farmers had been demanding rates closer to 4 times the market value along with monthly rent in some cases. The government claims the new framework is more beneficial than central government guidelines and policies adopted by other states.

Minister Jitu Vaghani stated that the objective is to provide “appropriate and just compensation” based on the real value of arable or non-arable land in the area. Detailed guidelines are expected to be issued soon through a government resolution to resolve pending disputes smoothly.

Why This Matters

This policy shift is expected to directly benefit thousands of farmers whose land has been or will be used for power infrastructure projects. By moving away from rigid, decades-old Jantri rates to dynamic, market-linked compensation with built-in safeguards like the MRC and upfront payments, the government aims to strike a balance between infrastructure development and farmer welfare.

The decision is being hailed as a progressive step that acknowledges rising land values and the genuine economic loss faced by farmers when transmission lines and towers permanently occupy portions of their fields.

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