Land Rules Relaxed

Land is a primary factor for undertaking development activities and establishing industries for the production of goods and services. Without the availability of appropriate land, neither development works nor industrial production could be possible. In Nepal, however, an unfavourable land ownership system, the absence of an effective land-use policy, escalating land prices, and persistent friction in land acquisition have made development and industrialisation increasingly difficult. These constraints have delayed project implementation and raised costs, undermining competitiveness in the global market.

In an effort to ensure proper land use and discourage the speculative segmentation of agricultural land, the government introduced the Land Use Regulation 2022. The regulation has been effective in curbing rampant plotting of farmland. However, its rigid provisions also created unintended obstacles for development projects, including the construction of electric transmission lines that must pass through private land. As reported in this daily the other day, the government has now amended the regulation to address these challenges.

Through the third amendment to the Land Use Regulation 2022, a new provision allows the subdivision of land that falls within electric transmission line corridors while maintaining ownership in the name of the respective landowners. The amendment, published in the Nepal Gazette on November 13, 2025, has come into effect. It aims to resolve problems faced during transmission line construction without compromising land-use discipline.

Under the revised provision, land located within the right-of-way of transmission lines can be subdivided, but safety standards remain unchanged. The construction of permanent structures such as houses, the planting of tall trees, or the carrying out of risky activities within the right-of-way is strictly prohibited. The right-of-way is defined as the area extending a certain distance on both sides of the transmission line from its centre, ensuring safe operation, maintenance, and public safety.

The width of the right-of-way varies according to the voltage level and technical specifications of the transmission line. For 66 kV and 132 kV lines, the right-of-way is 18 metres—nine metres on each side. For 220 kV lines, it extends to 30 metres, while for 400 kV transmission lines, it is fixed at 46 metres, or 23 metres on each side from the centre line.

As per the regulation, land where transmission towers are installed is acquired by providing full compensation, and ownership remains with the project. Within the right-of-way, however, landowners receive partial compensation ranging from 10 to 25 per cent, while ownership remains with them. Subdivision is permitted provided that a written decision on land acquisition from the concerned project and proof of compensation are submitted. Earlier, landowners faced significant economic and social hardship because land falling under the transmission line right-of-way could neither be subdivided nor transferred or mortgaged with banks and financial institutions. 

The new provision is therefore a pragmatic correction. By facilitating legal land transactions without compromising safety or project requirements, it strikes a balance between development needs and property rights. More importantly, it signals a willingness on the part of the state to fine-tune policies based on ground realities. Such adaptive policymaking is essential if Nepal is to accelerate infrastructure development while ensuring fairness, efficiency, and public trust.