The Assam Gas Company Limited (AGCL) and Oil India Limited have agreed to form a joint venture company to lay, build and operate city natural gas distribution networks in parts of Assam and the neighbouring northeastern state of Tripura.

The agreement was signed on Saturday in Dispur, the state capital of Assam.

Apart from building local natural gas grids and providing piped natural gas to domestic and commercial establishments in Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur and Biswanath Chariali and a few districts of Tripura for the time being, the joint venture company, with the government of Assam-owned AGCL having 51% of the stake and OIL retaining the remaining 49%, shall also set up numerous compressed natural gas (CNG) stations, according to a statement.

Speaking at the event, Assam Chief Minister Himanta Biswa Sarma expressed confidence that the signing of the agreement between AGCL and OIL would give a significant boost to the state's ongoing industrial development process.

Sarma also expressed hope that the joint venture company would help the state transition to a greener fuel-based economy, in line with the government of India's "Northeast Hydrocarbon Vision 2030."