New Delhi: Union Home Minister Amit Shah on Thursday hailed a landmark agreement between the Centre, Assam and Nagaland aimed at facilitating oil and mineral exploration along the two states’ border, saying the pact could increase oil extraction capacity by up to ten times.
Speaking at the signing of a tripartite Memorandum of Understanding (MoU) in New Delhi, Shah described the agreement as a historic step that would unlock vast energy and mineral resources in the Northeast while contributing to India’s goal of energy self-reliance.
The MoU seeks to enable exploration and production activities across more than 1,000 square kilometres in the disputed area belt along the Assam-Nagaland border. Exploration in the region had remained largely stalled for over three decades due to jurisdictional and law-and-order challenges.
According to Shah, the agreement has the potential to significantly raise the current extraction capacity of 1,000-1,500 barrels of oil per day. He said one field alone could yield resources worth more than Rs 15,000 crore and noted that wider exploration across Nagaland could help reduce India’s dependence on imported crude oil.
The pact was signed in the presence of Union Petroleum and Natural Gas Minister Hardeep Singh Puri, Assam Chief Minister Himanta Biswa Sarma and Nagaland Chief Minister Neiphiu Rio.
Highlighting the broader significance of the agreement, Shah said it removes a major obstacle to Prime Minister Narendra Modi’s vision of a developed Northeast. He added that improved peace and stability in the region have created favourable conditions for investment and resource development.
The Home Minister also expressed confidence that the Armed Forces (Special Powers) Act (AFSPA) would be withdrawn from most of the Northeast by next year, citing a sharp decline in violence following multiple peace accords signed since 2019.
Sarma said the agreement would open substantial opportunities for hydrocarbon and mineral exploration, helping meet India’s long-term energy needs. He described the pact as a reflection of the Centre’s efforts to resolve long-standing disputes through cooperation and coordinated governance.
Officials believe the agreement could provide a major economic boost to both Assam and Nagaland while strengthening India’s domestic energy production capacity.
