Ahmedabad, July 4 -- Gujarat government on Friday announced a new compensation policy for farmers whose land is used for electricity transmission towers and power lines, replacing the existing jantri (circle rates)-based system with compensation based on twice the prevailing market value of land.

The decision comes amid an ongoing farmers' agitation in Morbi district over compensation for land being used for a power transmission project.

According to a state government press release, compensation for land affected by transmission lines will now be calculated at twice the prevailing market value instead of 200% of the jantri value.

Compensation for land occupied by transmission towers will also increase as the compensable area will incl...