The Assam Gas Company Limited (AGCL) and Oil India Limited (OIL) on Saturday signed an agreement for the establishment of a joint venture company to lay, build and operate city natural gas distribution networks in parts of Assam and Tripura.
The agreement was signed between the two sides at a ceremony here in the presence of Assam Chief Minister Himanta Biswa Sarma, an official statement said.
The Assam government-owned AGCL will have 51 per cent stake, while the OIL will hold the remaining 49 per cent share in the joint venture company.
It will build local natural gas grids and provide piped natural gas to domestic and commercial establishments in Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur and Biswanath Chariali in Assam, and a few districts of Tripura.
The company will also set up numerous compressed natural gas (CNG) stations, the statement said.
Speaking at the event, Sarma said the signing of the agreement between AGCL and OIL would provide a major thrust to the ongoing process of industrial development in the state.
IndianOil, Adani-Total, Shell lap up Reliance's KG-D6 gas; IOC top bidder
CNG, piped gas prices to be cut but no clarity on deregulation: Analysts
Kirit Parikh panel may recommend price caps to help moderate CNG rates
Kirit Parekh panel recommends 20% premium for gas production by ONGC, OIL
CNG, piped cooking gas price down by up to Rs 6 in Delhi, 1st cut in 2 yrs
Himadri Speciality Chemical Q4 PAT grows over three-fold to Rs 77 cr
ED searches Byju Ravindran's offices, residential premises in Bengaluru
Jaiprakash Associates defaults on $508 mn loan repayment due on Mar 31
Creating a bigger reach very important in MSMEs: Shriram Finance exec VC
SBI Card Q4 net up 3% to Rs 596 cr on rise in finance, operating costs
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, he added.
The chief minister also expressed hope the JV company would help in the state's endeavour to make the transition towards a greener fuel-based economy, in sync with the Northeast Hydrocarbon Vision 2030.
He 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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)