Assam Gas Company Limited (AGCL) and Central government-owned Oil India Limited (OIL) signed an agreement on Saturday to establish a Joint-Venture Private Limited Company (JVPLC) for the construction and operation of city natural gas distribution networks in parts of Assam and Tripura. The JVPLC will focus on building local natural gas grids and providing piped natural gas to domestic and commercial establishments for cooking purposes in Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur, and Biswanath Chariali, as well as a few districts of Tripura initially.
The JVPLC will be established with an authorized share capital of Rs 500 crore and an initial paid-up capital of Rs 100 crore. Under the agreement, AGCL, owned by the Assam government, will hold 51% equity in the JVPLC, while OIL will retain the remaining 49% share.
In addition to laying natural gas distribution networks, the JV company will also establish several Compressed Natural Gas (CNG) stations to provide gas to CNG-operated vehicles.
The agreement was signed at a ceremony held at Janata Bhawan in Dispur, with the Assam Chief Minister, Himanta Biswa Sarma, expressing confidence that the agreement would provide a significant boost to the state’s ongoing industrial development process. The Chief Minister hoped that the JV company would play a role in the state’s transition towards a greener fuel-based economy, in line with the government’s Northeast Hydrocarbon Vision-2030.
Sarma also lauded OIL’s contribution to Assam’s economic growth over the past few decades and praised the company for reinvesting a portion of its earnings in Assam and other parts of the northeast through initiatives such as the agreement signed on Saturday. He also appreciated OIL’s efforts to expand into novel energy territories such as solar energy production.
The signing ceremony was attended by several officials, including Assam Industries Minister Bimal Bora, Public Health Engineering Departmental Minister Jayanta Mallabaruah, Chairman of AGCL Bolin Chetia, Chairman and Managing Director of OIL Ranjit Rath, among others. The JV company is expected to strengthen the state’s economy and promote the use of natural gas as a cleaner alternative fuel in the region.
