Guwahati: Oil India Limited (OIL), a central public sector undertaking, has announced its approval for an equity contribution of up to Rs 1,738 crore in the Joint Venture Company (JVC) called North East Gas Distribution Company Limited (NEGDCL).
The JVC is a collaboration between OIL and Assam Gas Company Limited (AGCL), with OIL holding a 49% stake, and AGCL holding a 51% stake. NEGDCL was incorporated in July 2023 for the purpose of executing City Gas Distribution projects.
NEGDCL through this collaboration aims to construct natural gas distribution infrastructure to supply piped natural gas to residential and commercial properties in specific areas. These areas include Assam's Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur, and Biswanath Chariali districts, as well as several districts in Tripura.
NEGDCL will also provide piped natural gas to domestic and commercial establishments in the designated districts, enabling them to use natural gas for various purposes.
OIL, as part of the agreement, will also establish compressed natural gas stations. CNG is a clean and economical alternative fuel for vehicles.
The approval for equity contribution was approved by the Board of Directors of Oil India Limited during a meeting held on September 4, 2023.
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