Fourteen interstate transmission system (ISTS) projects are facing prolonged right-of-way (RoW) issues, mainly because of the demand for higher compensation compared to rates determined by state governments.

Other reasons for transmission project challenges include delays in forest clearances, Minister of State for Power Shripad Naik told the Rajya Sabha.

Eight of the 14 projects facing delays due to RoW issues are being implemented by POWERGRID, and six by private companies Adani, Sterlite, Tata Power, and ReNew. These projects are spread across several states.

To address the demand for higher compensation, the Ministry of Power revised the guidelines for payment of RoW compensation for laying transmission lines in June 2024. Per these guidelines, the land rate has been linked to the market rate. Compensation amounts for the tower base area and RoW corridor have been increased to 200% and 30% of the land value, respectively.

The compensation guidelines apply to transmission lines supported by tower bases with a voltage level of 66 kV and above, excluding sub-transmission and distribution lines below 66 kV.

Replying to a question on the impact of these delays on renewable energy integration into the grid, the minister said suitable alternative arrangements are made wherever feasible for evacuating renewable energy by utilizing margins in the existing transmission network.

Route alignment before approval of projects is being validated on the PM Gati Shakti portal to overcome RoW challenges in transmission projects. This helps optimize the route and corridor widths, particularly in forest and urban areas.

The Ministry of Power is actively utilizing the Project Monitoring Group under the Department for Promotion of Industry and Internal Trade to resolve bottlenecks in transmission projects and coordinate with transmission service providers, state governments, and Union ministries to expedite resolution.

Projects to evacuate renewable energy across India are struggling to keep pace with solar and wind capacity additions, which are rising in recent years.

Besides RoW issues, landholder opposition, litigation, and delays in obtaining forest, wildlife, and tree-cutting approvals are among the key challenges that delay transmission project commissioning. Project developers frequently cite transmission infrastructure as a major cause of delays in solar project commissioning.