Union Home Minister Amit Shah on Thursday hailed the signing of a tripartite Memorandum of Understanding (MoU) between the Centre, Assam and Nagaland for oil exploration as a landmark step that could increase crude oil extraction in the region by nearly ten times.
Speaking at the MoU signing ceremony for mineral oil operations in the Assam-Nagaland border areas, Shah said the agreement would unlock new opportunities for energy and mineral exploration while accelerating economic growth and prosperity across the Northeast.
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The pact focuses on facilitating oil and mineral exploration in the Disputed Area Belt (DAB) along the Assam-Nagaland border, where exploration activities had remained suspended for over three decades due to jurisdictional disputes.
According to an Assam government statement, the agreement covers more than 1,000 square kilometres of land believed to hold significant reserves of hydrocarbons and minerals. The MoU is expected to enable exploration and production activities that were previously stalled because of unresolved boundary issues.
The agreement was signed in the presence of Union Home Minister Amit Shah, Union Petroleum and Natural Gas Minister Hardeep Singh Puri, Nagaland Chief Minister Neiphiu Rio and Assam Chief Minister Himanta Biswa Sarma.
Describing the development as a “historic moment”, Shah said the MoU removes a major obstacle to Prime Minister Narendra Modi’s vision of transforming the Northeast into a developed and economically vibrant region.
He stated that the agreement has the potential to raise the current extraction capacity of 1,000 to 1,500 barrels of oil per day by nearly tenfold. Shah also claimed that a single oil field in the region could yield recoverable resources worth over Rs 15,000 crore, while full-scale extraction across Nagaland could significantly reduce India’s dependence on imported crude oil.
Highlighting the improving security situation in the Northeast, Shah announced that the Armed Forces (Special Powers) Act (AFSPA) is expected to be withdrawn from almost the entire region next year, with only one or two states likely to remain under its purview.
He said the gradual reduction in areas covered under AFSPA reflects the return of peace and stability and pointed out that 12 peace accords signed since 2019 between various groups and state governments have contributed to an approximately 80 per cent decline in violent incidents across the region.
Shah further noted that the inability to reach a consensus on resource exploration had long hindered the development of both Assam and Nagaland. The newly signed agreement, he said, is a strong example of cooperative federalism and collaboration between the Centre and state governments to unlock the Northeast’s economic potential.
Echoing similar views, Assam Chief Minister Himanta Biswa Sarma said the agreement would create significant opportunities for hydrocarbon exploration and mineral extraction, strengthening India’s long-term energy security.
Sarma added that the MoU reflects the Modi government’s commitment to resolving long-pending and complex issues that have historically impeded development and the efficient utilisation of natural resources in the region.
The Centre believes the agreement will provide fresh momentum to India’s efforts towards achieving greater energy self-reliance while driving economic growth in the Northeast through coordinated development initiatives.
(This story is published from a syndicated feed)
