Authorities have approved compensation rates for land acquisition linked to the Vadhvan Port Project, setting payments for agricultural land at more than Rs 20 million (mn) per hectare. The decision follows a review of valuation metrics and will apply to parcels identified under the project's acquisition schedule. Officials have indicated that the approved rate represents the base compensation and that additional statutory entitlements will be calculated according to prevailing law. The formula used for calculation is set out by the approving authority and will guide future valuations.

The compensation framework is intended to provide a transparent basis for disbursal to affected landowners and tenants. Affected parties will be notified of their entitlements and the process for verification and payment, and administering authorities will finalise technical surveys and records before payments commence. The rates aim to align closely with market assessments carried out during the valuation exercise. A grievance redress mechanism will be put in place to address disputes arising from assessments and payments.

Local stakeholders are expected to engage with the administration to resolve claims and to complete documentation needed for release of funds. The approval is likely to influence negotiation dynamics for remaining parcels and to set a precedent for compensation in the wider coastal development plan. Authorities have planned outreach measures to explain entitlements and timelines to landholders. Receipt of compensation is expected to support livelihoods and local economic activity during project implementation.

Implementation will require formal notification in the official gazette followed by administrative steps to transfer funds to eligible claimants. The project sponsor and government agencies will coordinate on disbursal mechanisms and monitoring to ensure compliance with statutory provisions. The approved rate for agricultural land will be used as the reference point while other categories of land will be assessed as per the established methodology. Independent audits and periodic reports will track disbursal and compliance.