Guwahati: Assam Gas Company Limited and Oil India Limited on Saturday, at a ceremony held at Janata Bhawan, 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 Assam government-owned AGCL having 51% of share equity and OIL retaining the remaining 49%, shall build local natural gas grids to provide piped natural gas to domestic & commercial establishments in Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur and Biswanath Chariali and a few localities of Tripura for the time being. It will also set-up numerous compressed natural gas (CNG) stations.

State chief minister Himanta Biswa Sarma, while speaking at the event, exuded confidence that the signing of agreement between AGCL and OIL would provide a major thrust to the ongoing process of industrial development in Assam for the past couple of years.

Sarma added the JV company, with an authorised share capital of ₹500 crore and initial paid-up capital of ₹100 crore, would prove to be a milestone in the strengthening of Assam’s economy in days to come. He further expressed hope that it would aid in the State’s endeavour to make transition towards a greener fuel-based economy, in sync with the Northeast Hydrocarbon Vision 2030.

In presence of State ministers Bimal Bora, Jayanta Mallabaruah, AGCL chairman Bolin Chetia, OIL chairman & managing director Ranjit Rath with among others, Sarma lauded the OIL management for reinvesting a part of its earnings in Assam and other parts of the Northeast through various initiatives. He also praised OIL for its foray into novel energy territories such as solar energy production, among others.