Sikkim Notifies Compensation Norms for Power Transmission Line Right of Way

The Government of Sikkim, through its Power Department, issued a significant notification on January 16, 2024, establishing clear norms for the payment of compensation for land and damages related to Right of Way (ROW) for specific power transmission projects. This notification, bearing No. Trans/CIR/2023/N/003/225, was subsequently published in the Sikkim Government Gazette as an Extraordinary issue on January 17, 2024, bringing the provisions into immediate effect. The State Government’s action aimed to standardize the compensation framework for critical infrastructure development, specifically for projects being implemented by the Power Grid Corporation of India Limited (POWERGRID). The legislation provided a structured approach to remunerate landowners affected by the establishment of transmission lines, thereby streamlining the process of land access and usage for these vital projects.

The notification specifically addresses two key projects: the 220 kV double circuit transmission line connecting the 500 MW LancoTeesta Hydro Power Limited Teesta-IV Hydro Electric Project pot head yard to the POWERGRID Rangpo Pooling Station, including associated bays at Rangpo; and the 220 kV double circuit transmission line from the 120 MW Rangit-IV Hydro Electric Project to the POWERGRID New Melli Pooling Station, along with associated bays at the New Melli Gas Insulated Switchgear Sub-station. Under the new norms, the standard minimum rate for land compensation was set at Rs. 500 per square foot for rural areas and Rs. 800 per square foot for Municipal areas. These rates notably incorporate a multiplication factor and 100% solatium, which refers to an additional amount paid as compensation for distress or inconvenience, often used to enhance the market value. A crucial aspect of the compensation structure outlined in the notification is the distribution of payment for the Tower Base and the Right of Way (ROW). The legislation provided: “The payment of compensation for Tower Base and Right of Way (ROW) shall be at the rate of 85% and 15% of the above standard cost of the land respectively as per the Guidelines of Ministry of Power, Government of India vide No. 3/7/2015-Trans dated 15th October, 2015.” Furthermore, the notification mandated that damages compensation would also be paid for both the Tower Base and the Right of Way.

The legislative intent behind this notification was to establish a transparent and equitable mechanism for compensating individuals whose land is utilized for power transmission infrastructure. Prior to such specific norms, the absence of a standardized compensation framework could lead to inconsistencies, delays, and potential disputes in land acquisition or usage for public utility projects. By aligning with the Guidelines of the Ministry of Power, Government of India, the Sikkim government aimed to ensure uniformity and fairness in compensation practices, reflecting a broader national policy rationale for infrastructure development. This move addresses potential statutory gaps by providing clear, pre-defined rates and methodologies for calculating compensation, thereby reducing ambiguity for both project implementers like POWERGRID and affected landowners. The notification introduces new obligations for the implementing agency to adhere to these specified rates and ensures that landowners receive fair remuneration for the use of their property, including not only the land value but also compensation for damages incurred. The enforcement of these norms is direct, as the notification itself serves as the binding standard for all future compensation payments related to these specific power projects within Sikkim.

Keywords: Sikkim, compensation, Right of Way, ROW, power transmission, Power Grid, land acquisition, infrastructure, notification, land rates

Geo Tags: India, Sikkim District: Not Applicable