Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The government has allowed land falling directly beneath electricity transmission lines to be subdivided, introducing a significant policy shift aimed at easing long-standing legal and economic difficulties faced by landowners.
Through the third amendment to the Land Use Regulation, 2079, the government has permitted subdivision of land located within the Right of Way of power transmission lines, while retaining ownership in the name of the concerned landowners. The amendment was published in the Nepal Gazette on 27 Kartik and has already come into force.
The new provision has been introduced to address persistent obstacles in the construction and expansion of electricity transmission infrastructure. While subdivision of land under transmission lines is now allowed, existing safety standards will remain strictly enforced. Construction of houses or other permanent structures, plantation of tall trees, or engagement in any high-risk activities within the right of way area will continue to be prohibited.
The Right of Way refers to a designated area extending a fixed distance on both sides of a transmission line’s centerline, determined to ensure safe operation, maintenance, and public safety. The width of the RoW varies depending on technical parameters such as voltage level, tower height, wire sag, and engineering standards.
According to the regulation:
During transmission line construction, land required for tower pads is acquired through compensation, with ownership transferred to the project authority. However, land falling within the right of way—excluding tower bases—remains under the ownership of the original landholders, who are provided partial compensation. Currently, compensation for RoW-affected land ranges from 10 to 25 percent of the government-assessed land value.
Under the amended provision, land subdivision within the right of way is permitted if the concerned project submits a written request along with evidence of compensation paid and an official decision related to land acquisition. In such cases, land ownership will legally remain with the respective landowners.
The regulation explicitly states that land falling within the right of way of an electricity transmission line, for which compensation has already been provided, may be subdivided in accordance with prevailing laws, provided that documentation from the concerned project authority is submitted.
Previously, landowners whose property partially fell within the right of way faced serious challenges, as they were unable to subdivide land, transfer ownership, or use it as collateral in banks and financial institutions. This led to prolonged economic and social hardships.
With the new provision allowing subdivision of right of way-affected land, land transactions are expected to become more flexible, enabling landowners to legally utilize, manage, and leverage their property while maintaining essential safety requirements for power transmission infrastructure.
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