At the heart of the matter is the quest for stability in global oil markets.
Oil India Limited (OIL), a Central public sector enterprise, has greenlit an equity infusion of up to Rs 1,738 crore into the joint venture company (JVC) North East Gas Distribution Company Limited (NEGDCL).
This JVC is the result of a partnership between OIL and Assam Gas Company Limited (AGCL), with OIL holding a 49 per cent stake and AGCL holding a 51 per cent stake. the NEGDCL was formally established in July 2023 to oversee City Gas Distribution projects.
The primary objective of NEGDCL’s collaboration is to develop natural gas distribution infrastructure, facilitating the delivery of piped natural gas to residential and commercial properties in specified regions.
These regions encompass districts in Assam such as Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur, and Biswanath Chariali in Assam, along with various districts in Tripura.
NEGDCL will also extend its services to provide piped natural gas to households and businesses in these designated districts, offering them the benefits of natural gas for a wide range of applications.
As part of the agreement, OIL will also establish compressed natural gas stations, promoting CNG as an eco-friendly and cost-effective alternative fuel for vehicles.
The approval for this equity contribution was granted during a meeting of the Board of Directors of Oil India Limited held on September 4, 2023.