OIL will spend Rs 1,738 billion in a firm that distributes gas in the North East

An equity investment of up to Rs 1,738 crore has been approved by Oil India Limited (OIL), a Central Public Sector Enterprise, into the joint venture company (JVC) North East Gas Distribution Company Limited (NEGDCL).

OIL and Assam Gas Company Limited (AGCL) collaborated to create this JVC, with OIL owning a 49 percent ownership and AGCL owning a 51 percent stake. In July 2023, the NEGDCL was officially founded to manage City Gas Distribution initiatives.

The main goal of NEGDCL’s partnership is to build natural gas distribution infrastructure that will make it easier to provide piped natural gas to homes and businesses in specific areas.

These areas include a number of Tripuran districts as well as Assamese districts including Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur, and Biswanath Chariali.

Additionally, NEGDCL will expand its services to supply piped natural gas to residences and businesses in these selected areas, providing them with the advantages of natural gas for a variety of uses.

As part of the deal, OIL will also set up CNG stations and promote CNG as an economical and environmentally beneficial alternative fuel for automobiles.

At a meeting of Oil India Limited’s Board of Directors on September 4, 2023, the Board of Directors approved this equity commitment.