The Assam Gas Company Limited (AGCL) and Oil India Limited (OIL) on April 29 signed a Joint Venture Agreement (JVA) at the Assam Secretariat in the presence of Chief Minister of Assam Dr. Himanta Biswa Sarma. The ceremony was also attended by Bimal Borah, Minister of Industries, Commerce and Public Enterprises, Cultural Affairs, Dr. Ranjit Rath, CMD of OIL, and Bhaskar Jyoti Phukan, MD of NRL.
Under the agreement, AGCL will hold a 51 per cent stake in the JV, while OIL will hold the remaining 49 per cent. The new company will Lay, Build, and Operate City or Local Natural Gas Distribution Networks in 6 districts of Assam and 6 districts of Tripura.
The JV company will build local natural gas grids across the authorized areas, set up CNG stations, and provide Piped Natural Gas to domestic and commercial establishments. The projects will further the cause of transitioning to a Gas-based economy in line with the Government of India’s NE Hydrocarbon Vision 2030.
Oil India has been a dominant crude oil exploration and production company in the region for over 6 decades, and with this venture, it intends to plough back its earnings in the state of Assam and the North East region, while also furthering industrialization of the region.
In Assam, the new entity will carry out projects across Dhemaji, Lakhimpur, Sonitpur, Biswanath Chariali, Darrang, and Udalguri. The project will also create job opportunities in the region, boosting economic growth.
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