In a significant step towards boosting energy security and accelerating economic development in the Northeast, a tripartite Memorandum of Understanding (MoU) was signed on Thursday between the Government of India, the Governments of Assam and Nagaland to facilitate mineral oil and natural gas exploration in the Assam-Nagaland boundary areas.
The agreement was signed in the presence of Union Home Minister and Minister of Cooperation Amit Shah. Union Petroleum and Natural Gas Minister Hardeep Singh Puri, Assam Chief Minister Dr Himanta Biswa Sarma and Nagaland Chief Minister Neiphiu Rio were also present on the occasion.
Describing the development as a “historic moment,” Shah said the agreement would remove a major obstacle in realizing Prime Minister Narendra Modi’s vision of a prosperous and developed Northeast while opening new avenues for oil and natural gas exploration as well as mineral mining.
“Today we have witnessed a historic moment. This agreement will open up possibilities for oil and natural gas exploration and mineral mining and has removed a major hurdle in fulfilling Prime Minister Narendra Modi’s vision for a prosperous North-East,” Shah said.
The Home Minister noted that both Assam and Nagaland had agreed not to allow any impediment to India’s oil exploration efforts and had chosen the path of cooperation, recognizing that hydrocarbon resources constitute national wealth.
He said the agreement reflects the spirit of “Nation First” and demonstrates how cooperative federalism can help unlock the region’s vast economic potential.
Shah revealed that the Nagaland Government had agreed to permit oil exploration beyond the six designated fields identified earlier, extending the scope of exploration across the entire state. He added that the Assam Government had also supported the move, making it a win-win arrangement for all stakeholders.
“The Chief Minister of Nagaland has informed that apart from the six designated fields, the state government has agreed for oil exploration across the entire state. The Government of Assam is also in agreement. This is a win-win situation for everyone,” he said.
According to Shah, the agreement has the potential to transform the hydrocarbon sector in the Northeast, paving the way for mineral exploration and mining across the region. He pointed out that the Northeast possesses substantial reserves of oil, natural gas and minerals that remain largely untapped.
The Home Minister said the present extraction capacity of around 1,000 to 1,500 barrels per day could increase more than tenfold once exploration activities gain momentum under the new framework.
He expressed confidence that enhanced extraction of oil and gas resources in Nagaland would significantly reduce India’s dependence on imported energy resources and contribute to the country’s goal of achieving greater energy self-reliance.
Shah observed that longstanding challenges and the absence of a comprehensive agreement had adversely affected the economic development of both Assam and Nagaland for many years. The MoU, he said, would now create new opportunities for growth, investment and employment.
“There can be no greater example of cooperative federalism than this tripartite agreement,” he remarked.
Highlighting the Centre’s focus on the Northeast, Shah said Prime Minister Narendra Modi has consistently placed the region at the centre of national development efforts since assuming office in 2014. He noted that Modi is the Prime Minister who has visited the Northeast most frequently since Independence and has played a pivotal role in bringing peace and development to the region.
The Home Minister said that since 2019, the Centre has signed 12 different agreements with various groups in the Northeast, helping restore peace and resulting in nearly an 80 per cent decline in violence.
He stated that the rapid pace of infrastructure development witnessed in the region would not have been possible without these peace initiatives.
Shah also pointed out that tourism, industrial activity and private investment have increased substantially in the Northeast under the Modi government due to improved law and order and industrial peace.
He further informed that more than 80 per cent of the Northeast has now been brought out of the ambit of the Armed Forces (Special Powers) Act (AFSPA) and expressed confidence that, except for one or two states, AFSPA would be completely withdrawn from the region by next year..
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Referring to the ongoing geopolitical tensions involving the United States, Iran and Israel, Shah said energy security has become a matter of national importance. While acknowledging that the immediate benefits of the agreement may take time to materialize, he stressed that the MoU would eventually strengthen India’s energy resilience and reduce vulnerability to external shocks.
“This is a highly significant day for the country’s development, for the prosperity of the North-East and for strengthening the vision of an Atmanirbhar Bharat,” he said.
The Home Minister added that the agreement not only expands opportunities for hydrocarbon exploration but also opens new possibilities for mineral mining across Nagaland and the wider Northeast. He said the initiative would contribute to economic prosperity while promoting harmony and cooperation between the two neighbouring states.
Expressing optimism about the future of the region, Shah said that disputes related to borders and law and order issues in the Northeast are gradually being resolved. He noted that more than half of the inter-state border disputes in the region have already been settled and described the signing of the MoU as a new beginning.
“This is a significant step towards strengthening hope and confidence in the golden future of the North-East,” he said.
According to officials, the MoU establishes a coordinated framework for facilitating petroleum exploration and production activities in identified areas of interest along the Assam-Nagaland boundary. The agreement seeks to ensure operational continuity, safety and security of personnel and assets, and effective coordination among all stakeholders.
The framework is expected to encourage fresh investments in the upstream petroleum sector, support ongoing and future hydrocarbon projects and contribute significantly to India’s energy security objectives.
The Ministry of Home Affairs facilitated discussions leading to the agreement in close coordination with the Ministry of Petroleum and Natural Gas and the governments of Assam and Nagaland.
Officials said the agreement would provide greater certainty and stability for hydrocarbon operations in the region while reflecting the shared commitment of all stakeholders to promote economic development through collaborative and transparent mechanisms.
The MoU underscores the spirit of cooperative federalism and constructive engagement between the Centre and the two states, with the broader objective of unlocking the Northeast’s vast energy potential while safeguarding the interests of all concerned parties.
Rio hails Assam-Nagaland Oil MoU as historic milestone
Nagaland Chief Minister Neiphiu Rio has described the signing of the tripartite Memorandum of Understanding (MoU) on mineral oil operations in the Assam-Nagaland boundary areas as a historic milestone that will usher in a new era of economic growth, cooperation and shared prosperity for the two neighbouring states.
Speaking after the signing of the agreement between the Government of India, the Governments of Assam and Nagaland in New Delhi on Thursday, Rio expressed gratitude to the Central Government for facilitating the landmark pact.
He said the Centre’s commitment to peace, stability and development in the Northeast had played a crucial role in making the agreement possible.
Rio also thanked Assam Chief Minister Dr Himanta Biswa Sarma and the Government of Assam for their cooperation, goodwill and constructive approach throughout the discussions that culminated in the signing of the MoU.
Describing the agreement as a reflection of the growing trust and understanding between the two states, Rio said the MoU demonstrates the maturity of Assam-Nagaland relations and their shared commitment to regional development and economic progress.
The Chief Minister noted that unresolved boundary issues had for decades posed challenges to the development of natural resources in the border areas. However, he said the newly signed agreement provides a practical framework that balances development priorities while safeguarding the interests of both states.
According to Rio, the MoU will unlock the vast economic potential of Sectors A to F along the Assam-Nagaland border, creating opportunities for enhanced economic activity, better resource management and stronger inter-state cooperation.
