Amit Shah says agreement removes a major hurdle to Northeast development; initiative expected to boost energy security, investment and economic growth in Assam and Nagaland.
New Delhi (Economy India): In a major step towards strengthening India’s energy security and accelerating economic development in the Northeast, the Central Government on Friday signed a historic tripartite Memorandum of Understanding (MoU) with the governments of Assam and Nagaland for the exploration and production of crude oil and natural gas.
The agreement was signed in the presence of Union Home Minister Amit Shah, Union Petroleum and Natural Gas Minister Hardeep Singh Puri, Assam Chief Minister Himanta Biswa Sarma and Nagaland Chief Minister Neiphiu Rio.
Amit Shah Calls It a Historic Milestone
Describing the agreement as a landmark achievement, Amit Shah said the MoU would significantly enhance prospects for oil and natural gas exploration in the country while contributing to the vision of a prosperous and developed Northeast.
“This is a historic moment. The agreement has removed a major obstacle in realizing Prime Minister Narendra Modi’s vision of a developed and prosperous Northeast,” Shah said.
He emphasized that the initiative reflects the spirit of cooperative federalism and demonstrates how the Centre and states can work together to unlock economic opportunities and accelerate regional development.
Strengthening India’s Energy Security
The agreement comes at a time when global energy markets continue to face uncertainty amid geopolitical tensions and supply disruptions.
Referring to the ongoing conflict in West Asia and its impact on global energy supplies, Shah highlighted the importance of enhancing domestic exploration and production capabilities.
“Energy security is the foundation of sustainable economic growth. This initiative will strengthen India’s self-reliance and reduce vulnerability to external energy shocks,” he said.
Industry experts believe the agreement could unlock significant hydrocarbon reserves in the region, helping India reduce import dependence and improve long-term energy resilience.
New Opportunities for Northeast Development
The Northeast region has long been recognized for its hydrocarbon potential, particularly in Assam and adjoining areas.
The tripartite agreement is expected to:
- Accelerate oil and gas exploration activities
- Attract fresh investments in the energy sector
- Generate employment opportunities
- Improve infrastructure development
- Strengthen state revenues
- Promote industrial growth in the Northeast
Officials noted that the agreement would create a stable framework for exploration and production activities while facilitating better coordination between the Centre and state governments.
Cooperative Federalism in Action
Amit Shah described the MoU as an excellent example of cooperative federalism, where the Centre and states work together to resolve long-standing issues and unlock economic opportunities.
The agreement is expected to facilitate smoother implementation of exploration projects and encourage greater participation from public and private sector energy companies.
Supporting the Vision of Viksit Bharat
The development aligns with the Government of India’s broader objective of enhancing domestic energy production, reducing import dependence and supporting the vision of a developed India by 2047.
With energy demand expected to rise significantly in the coming decades, policymakers view domestic exploration and production as critical to ensuring long-term energy security and economic stability.
The agreement is also expected to strengthen the Northeast’s role in India’s energy landscape while contributing to regional prosperity and national growth.
(Economy India)
