In a major measure to facilitate uninterrupted movement of crude oil supplies between the two states, the center and the governments of Assam and Nagaland today signed a tripartite Memorandum of Understanding (MoU) to streamline the exploration and distribution process along the inter-state border areas.

The agreement was signed in the presence of Union Home Minister Amit Shah, reflecting the central government's commitment to encourage and support cooperative federal relations and further develop the energy sector in the north-eastern region.

According to officials, the MoU will enable mineral oil activities like exploration, drilling, transportation and distribution, in designated boundary areas of Assam and Nagaland. The agreement aims to eliminate redundancy in administrative, regulatory and land-use clearance mechanisms that could hamper investment and development in these delicate border areas.

The agreement focuses on collaborative planning and coordination between the three parties, access to data, faster approval processes for infrastructure projects as well as enhanced cooperation on safety and environmental protection measures. State and central agencies will collaborate closely to facilitate the efficient conduct of oil and gas activities, while protecting local communities' interests and concerns and the ecology.

Officials emphasised in their address that this inter-governmental cooperation can have considerable implications in promoting energy development in Northeast India, which has tremendous growth potential and strategic importance for the nation's energy security. The MoU will help create more jobs for the local people, improved infrastructure development, and long-term investments across the industry value chain in mineral oil projects.

In addition, the collaboration demonstrates how the government is continuing to seek to strengthen ties among states and between the Centre and the states in critical economic areas, with a focus on promoting transparent and inclusive development outcomes in different areas of the country.