Committee to decide on market rate of land for laying transmission lines
A committee has been formed to determine the market rate for land required to lay transmission lines. This decision is crucial because land acquisition, or Right of Way (RoW), is a primary reason for delays in building power infrastructure. The move aims to clear bottlenecks that are slowing down the evacuation of electricity, especially from renewable energy hubs like Gujarat and Rajasthan.
For investors, this development is significant as it addresses a key structural challenge in the power sector. By streamlining land acquisition, the government hopes to accelerate the completion of transmission projects. This could lead to faster project execution and improved operational efficiency for power transmission companies. Investors should monitor the committee's recommendations and the subsequent implementation timeline to gauge the impact on the sector's growth prospects.
Excerpt from BusinessLine
The Power Ministry has issued guidelines for fixing the rate for acquiring land holdings, where the market price is higher than the circle rate, for laying inter state transmission system (ISTS) lines. These guidelines for determining compensation for laying of ISTS lines are to address the Right of Way (RoW) issues…Read the original at BusinessLine
Key takeaways
- Category: Sector.
- Assessed as a significant, market-relevant update.
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