Big Northeast Breakthrough: How Assam-Nagaland pact could reshape investment and growth in region

The Centre, Assam and Nagaland signed a tripartite agreement on Thursday with an aim to facilitate mineral oil operations in the boundary areas between both states. The memorandum of understanding (MoU) -- signed in the presence of Union Home Minister Amit Shah, Union Petroleum Minister Hardeep Singh Puri, Assam Chief Minister Himanta Biswa Sarma and Nagaland Chief Minister Neiphiu Rio -- is set to the opening of a new economic corridor of energy, investment and prosperity across the entire Northeast, said the Home Ministry. The pact is widely expected to encourage fresh investment in oil, gas and mineral exploration while providing greater certainty for future energy projects. It could also unlock large-scale investment across the Northeast and help transform the region into a major hydrocarbon and mineral resource hub.

Shah said that "today, we have witnessed a historic moment", asserting that the pact will "open up possibilities for oil and natural gas exploration as well as mineral mining". Both states have decided that they would not allow any obstacle to the country's oil exploration but will advance on the path of mutual cooperation, as these resources constitute national wealth, he noted.

Calling it a "win win situation for all stakeholders", Shah said the pact removes a major hurdle to oil and natural gas exploration and supports Prime Minister Narendra Modi's vision for a prosperous Northeast. The Home Minister also said it will pave the way for mineral exploration and mining across the entire region. Until now, the absence of such a pact and several longstanding challenges had hindered the economic development of both states for a considerable period.

Immense wealth of minerals: Amit Shah

Shah said that the North-East possesses not only vast reserves of oil and gas but also an immense wealth of minerals, noting that with the signing of the agreement, there is potential for the current extraction capacity of 1,000-1,500 barrels a day to increase by more than 10 times.

Nagaland's oil, gas and mineral reserves could help reduce the country's dependence on imported energy. The MoU, he said, provides for coordination on operational continuity, safety and security of personnel and assets involved in hydrocarbon activities.

Shah expressed confidence that the AFSPA could be withdrawn from almost the entire Northeast by next year. More than 80 per cent of the region has been freed from the law that grants extraordinary powers and legal immunity to the military to maintain law and order in areas considered as "disturbed".

MoU comes amid global energy uncertainty: Amit Shah

Shah said the agreement could strengthen the country's long-term energy security given it comes at a time of global energy uncertainty linked to tensions involving the US, Iran and Israel.

The minister also noted that more than half of inter-state border disputes in the Northeast have already been resolved.

He said the MoU marks a new beginning for the region's future development and stability.

Nation development impossible without energy: Home Minister

Calling it is a "highly significant day for the country's development" and for the "prosperity of the Northeast", he said that a nation's development is impossible without energy.

India and the world are grappling with a severe crisis due to conflicts involving West Asia.

The central government remains committed to promoting exploration and production activities through collaborative and transparent mechanisms, thereby contributing to national energy security and economic development, he concluded.