Centre signs pact with Assam & Nagaland to enhance prodn of hydrocarbons

Guwahati: In a landmark move to unlock the northeast’s untapped energy reserves, the Centre, Assam and Nagaland govts on Thursday inked a tripartite agreement to facilitate exploration and production of hydrocarbons and other mineral deposits across an area of more than 1,000 sq km of land, along the Assam–Nagaland border.

The agreement, aimed at enhancing the country’s energy security and achieving greater self-sufficiency, was signed in the presence of Union home Minister Amit Shah, Union petroleum and natural gas minister Hardeep Singh Puri, Nagaland CM Neiphiu Rio and Assam CM Himanta Biswa Sarma.

“The development of both Assam and Nagaland remained hampered for a long time because a consensus could not be reached for an MoU. The avenue that opened today will open doors for development for both states. It is the best example of cooperative federalism,” Shah said.

“This will open new avenues for mineral exploration in the northeast. The area not only has oil and gas, but huge mineral deposits, as well, which could not be explored due to law and order issues,” he added.

With just one MoU, the extraction capacity of 1,000-1,500 barrels per day can be increased by 10 times, Shah said.

“In one field alone, there are possibilities of recovery of more than Rs 15,000 crore. If we extract the oil deposits spread across Nagaland, we would be able to reduce dependence on foreign countries for our oil needs,” he said.

Sarma said the pact marks a decisive breakthrough in unlocking the untapped potential of the region. “The identified area is expected to offer significant opportunities for hydrocarbon exploration and mineral extraction, contributing to the country’s long-term energy requirements,” he said.

Sarma said the agreement reflects the Modi govt’s commitment to resolving complex and long-pending issues that have historically hindered development and resource utilization in the region.

He described the pact as an example of cooperative federalism and coordinated efforts between the Centre and state govts to unlock the northeast’s economic potential.

Rio wrote on X, “ Grateful to GoI for facilitating the Tripartite MoU on equal sharing of proceeds from mineral oil operations in DAB between Nagaland & Assam. Look forward to early resumption of mineral oil operations for the entire State while safeguarding its special constitutional provisions.”