Assam Gas Company Limited, Oil India Limited sign agreement for establishment of Joint-Venture Private Limited Company

The Assam Gas Company Limited (AGCL) and Oil India Limited on Saturday signed an agreement for the establishment of a Joint-Venture Private Limited Company with the mandate to lay, build and operate city natural gas distribution networks in parts of Assam and Tripura for the time being.

The JV company, with Government of Assam-owned AGCL having 51% of share equity and OIL retaining the remaining 49%, shall, apart from building local natural gas grids and providing piped natural gas to domestic and commercial establishments in Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur and Biswanath Chariali and a few districts of Tripura for the time being, shall also set-up numerous compressed natural gas (CNG) stations.

Chief Minister Himanta Biswa Sarma exuded confidence the signing of agreement between AGCL and OIL would provide a major thrust to the ongoing process of industrial development in the State for the past couple of years. The Chief Minister added the JV company, with an authorised share capital of Rs 500 crore and initial paid-up capital of Rs 100 crore, would prove to be a milestone in the strengthening of the State’s economy in days to come. The Chief Minister further expressed hope the JV company would aid in the State’s endeavour to make transition towards a greener fuel-based economy, in sync with the Government of India’s Northeast Hydrocarbon Vision 2030.
Sarma also expressed his gratitude towards the Oil India Limited for the latter’s role in the economic growth of the State for the past many decades. The Chief Minister lauded the OIL management for reinvesting a part of its earnings in Assam and other parts of the Northeast through initiatives such as the agreement signed today. Sarma also praised OIL for its foray into novel energy territories such as solar energy production, among others.