Market-value compensation announced for agricultural land to be utilised for BPCL’s Irugur–Devanagonthi Pipeline Project
The state government has increased compensation for agricultural land owners affected by the BPCL Irugur–Devanagonthi Pipeline Project. The move follows protests from farmers who initially rejected the lower compensation offers for their land.
Why it matters
This resolution demonstrates the tension between infrastructure development and land rights, showing how government intervention can mitigate economic disputes.
The State government has issued an order for payment of market-value compensation for agricultural land to be used, under Right-of-Use provision, for the underground pipeline project of Bharat Petroleum Corporation Limited (BPCL) from Irugur to Devanagonthi for uninterrupted and timely supply of petroleum products.
Only 20% of market value was proposed by BPCL as compensation initially for the land identified to lay underground pipeline for the Irugur–Devanagonthi Pipeline (IDPL) Project that commenced in December 2023.
Questioning why alternative routes should not be explored, farmers opposed the pipeline that passes through agricultural lands in Sulur taluk of Coimbatore district and Palladam, Tiruppur South, and Kangeyam taluks of Tiruppur district.
With the backing of Central and State governments, the extent of compensation has now been raised to ₹50 crore from the earlier-proposed ₹8 crore for the land owners in Tiruppur district, and from ₹3 crore to ₹17 crore in Coimbatore district.
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