Right-of-Way Issues Delay 14 Interstate Transmission Projects

18 Mar 2025 CW Team

Fourteen interstate transmission system (ISTS) projects are facing delays due to prolonged right-of-way (RoW) issues, primarily driven by demands for higher compensation than state-approved rates. Additional challenges, including delays in forest clearances, have further stalled progress, according to Minister of State for Power Shripad Naik. Of the 14 affected projects, eight are being executed by POWERGRID, while six are handled by private companies, including Adani, Sterlite, Tata Power, and ReNew. These projects span multiple states. To address compensation concerns, the Ministry of Power revised RoW payment guidelines in June 2024, linking land rates to market values. Compensation for tower base areas was increased to 200% of land value, while the RoW corridor compensation was raised to 30%. The revised guidelines apply to transmission lines of 66 kV and above, excluding sub-transmission and distribution lines below this voltage. Despite these delays, the government ensures renewable energy evacuation by utilising margins in existing transmission networks wherever feasible. To mitigate RoW challenges, project route alignments are now validated through the PM Gati Shakti portal, optimising corridor planning in urban and forested areas. Additionally, the Ministry of Power is leveraging the Project Monitoring Group under the Department for Promotion of Industry and Internal Trade to coordinate with state governments, Union ministries, and transmission service providers to fast-track issue resolution. Transmission infrastructure remains a critical bottleneck in India's renewable energy expansion, with ongoing issues such as landholder opposition, litigation, and delays in environmental approvals further impacting project timelines. (mercom)

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