NEW DELHI: In a landmark move for regional stability and economic growth, a tripartite Memorandum of Understanding (MoU) was signed on Thursday between the Centre, Assam, and Nagaland. Union Home Minister Amit Shah hailed the agreement as a historic breakthrough that resolves a decades-old border dispute and paves the way for large-scale oil and gas exploration across the Northeast.
The agreement, signed in the presence of 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, covers exploration and production activities across more than 1,000 square kilometers along the contested interstate border.
Resolving Disputes for National Progress
The Home Minister emphasized that the pact stands as a prime exemplar of cooperative federalism and the “Nation First” principle. By setting aside long-standing territorial differences, both states have aligned with Prime Minister Narendra Modi’s vision of an energy-independent India.
“It stands out as an exemplar of India’s unity, where both states have chosen to move beyond disputes to realise Prime Minister Narendra Modi’s vision of an energy-independent India,” Shah noted in a post on X.
He particularly praised the statesmanship of CM Himanta Biswa Sarma and CM Neiphiu Rio for demonstrating flexibility. “I know that Himanta ji is very determined when it comes to protecting Assam’s interests. However, when I requested him to set aside this particular issue in the larger national interest, he agreed,” Shah added.
A 50-50 Revenue-Sharing Model
For decades, the Assam-Nagaland border region remained underutilized for petroleum activity due to unresolved territorial and jurisdictional issues. The new MoU effectively removes these hurdles by introducing a balanced framework.
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Equal Sharing: Both states have agreed to a 50-50 revenue-sharing arrangement for the extracted oil, natural gas, and minerals.
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Unrestricted Operations: The states formally resolved not to let boundary concerns hinder the extraction of national wealth.
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Broader Implications: Nagaland has also indicated that the state government is open to expanding oil exploration across its entire territory beyond the initially designated boundary fields.
Economic Impact and Future Potential
The economic significance of unlocking this resource-rich belt is immense. The Home Minister highlighted the transformative potential the agreement holds for the entire Northeast region and India’s broader energy security.
| Metric | Current Status | Projected Potential |
| Extraction Capacity | 1,000 to 1,500 barrels per day | Expected to increase more than tenfold |
| Revenue from a Single Field | Untapped due to disputes | Estimated to exceed ₹15,000 crore |
| Exploration Area | Stalled / Disputed | Over 1,000 sq. km cleared for operations |
“Fully harnessing the oil and gas reserves across Nagaland could substantially reduce India’s dependence on energy imports,” Shah stated. The tripartite MoU not only unlocks immediate economic benefits but also opens the door for broader mineral exploration and mining operations across the entire Northeast, turning the region into a crucial driver for an Aatmanirbhar Bharat (Self-Reliant India).
