News Brief

Assam Overhauls Land Access For Oil Projects; Hydrocarbon Companies To Get Direct Purchase Route

Arun Dhital

Jul 19, 2025, 04:47 PM | Updated 04:47 PM IST


Assam CM Himanta Biswa Sarma (File Photo)
Assam CM Himanta Biswa Sarma (File Photo)

The Assam Cabinet on Friday (18 July) decided to exempt oil and gas companies from purview of the usual land classification law to get land for their work, the Assam Tribune reported.

The Cabinet approved the exemption of hydrocarbon exploration and production activities from the ambit of the Assam Reclassification and Reclassification-cum-Transfer of Lands Act, 2015.

The move aims to ease land access for energy companies and fast-track strategic hydrocarbon projects.

This means projects by companies like Oil India Limited (OIL) and ONGC can move faster.

According to the Assam Tribune report, this will help speed up important oil and gas projects, bring in more money for the state, improve the country’s energy security, and make it easier to do business.

Instead of the government acquiring land for them, these companies can now directly buy or lease land from landowners at market rates.

If a company chooses to lease land, it must mention the lease period, compensation, and restoration obligations, if any.

To help with this, an online system will be created where companies can apply to reclassify land and pay any required fees.

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The Cabinet also cleared other key proposals:

Healthcare: Land near Sarusajai Stadium, Guwahati, has been allotted on long-term lease to Medanta for a Rs 800 crore hospital project, which will include a dedicated women and child facility and a Lemon Tree hotel.

AMCH Infrastructure: Approval was granted for constructing new teachers’ quarters and student hostels at Assam Medical College, Dibrugarh, with a total cost of Rs 357.28 crore.

Disaster Relief: The ongoing drought-like conditions have been declared a state-specific disaster, allowing compensation to affected beneficiaries under SDRF norms.

New University: 150 bighas of government land have been allotted at Deochar in Chhaygaon for the National University for Disability Studies.

Land Settlement: Land allotment with premium exemption was approved for 12 displaced families in North Lakhimpur.

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