Nagaland Chief Minister Neiphiu Rio on Friday, 12 June said the tripartite Memorandum of Understanding (MoU) signed among the Centre, Assam, and Nagaland would facilitate mineral oil exploration and production in the long-disputed belt along the Assam-Nagaland border, while ensuring cooperation among all stakeholders. Rio made the remarks while addressing the NITI Aayog meeting with Chief Ministers of the eight Northeastern states in New Delhi.

The MoU and What It Covers

The tripartite MoU was formally signed in New Delhi on Thursday, 11 June, in the presence of Union Home Minister Amit Shah. The agreement is designed to facilitate mineral oil operations specifically in the boundary areas between Assam and Nagaland — a zone that has historically been mired in inter-state boundary disputes, effectively stalling resource extraction for decades.

Shah stated that the agreement would open up significant opportunities for oil and natural gas exploration as well as mineral mining, while removing a major hurdle in realising Prime Minister Narendra Modi's vision of a prosperous and economically vibrant Northeast. Separately, efforts are also underway for the resumption of petroleum and natural gas exploration and production activities within Nagaland itself, according to Rio.

Energy Security and Economic Opportunity

Rio expressed optimism that the MoU initiative would unlock economic opportunities and contribute to the country's broader energy security goals. The Northeastern region has long been identified as having significant hydrocarbon reserves, but boundary disputes and administrative complexities have historically constrained exploration activity.

This comes amid a renewed Centre-led push to develop the Northeast as an economic growth corridor, with infrastructure, connectivity, and natural resource development forming the core pillars of that strategy.

Nagaland's Development Priorities at NITI Aayog

At Friday's NITI Aayog meeting, Rio highlighted a broad range of state development priorities and sought continued support from the Government of India. He acknowledged NITI Aayog's contribution to advancing the Sustainable Development Goals, the Aspirational Districts and Aspirational Blocks Programmes, the Sampoornata Abhiyan, and the establishment of the Nagaland Institute of Transformation (NIoT).

Despite progress over the past two decades, Rio noted that Nagaland continues to face fiscal and infrastructural challenges as a resource-constrained, revenue-deficit state. He expressed concern over the discontinuation of Revenue Deficit Grants under the Sixteenth Finance Commission and requested NITI Aayog's support for the provision of annual Special Grants during the Commission's award period to ensure fiscal sustainability and continuity of essential public services.

Connectivity, Infrastructure and Social Sector Asks

Rio sought support for several major connectivity projects, including the Foothill Road (Trans-Nagaland Highway), development of short landing strips at strategic locations to strengthen air connectivity, extension of the Dimapur-Zubza railway line up to Kohima, early sanction of the Dimapur-Tizit Railway Project, and development of inland waterways.

On urban infrastructure, the Chief Minister sought support for flyovers and elevated corridors in Dimapur, Kohima, and Chumoukedima to address growing traffic congestion. In education and healthcare, he requested the establishment of an Indian Institute of Technology (IIT) in Nagaland and strengthening of tertiary healthcare infrastructure, including financial assistance for the Nagaland Institute of Medical Sciences and Research in Kohima.

Rio also highlighted the proposed Nagaki City in Chumoukedima district as a major economic transformation initiative, seeking special consideration for core infrastructure development. Additional asks included expansion of coffee cultivation, promotion of agarwood-based livelihoods, implementation of hydroelectric projects, and enhancement of sports infrastructure and youth development programmes.

Reaffirming Viksit Bharat Commitment

Reaffirming Nagaland's commitment to the vision of Viksit Bharat @ 2047, Rio said the state looks forward to continued partnership with NITI Aayog, the Government of India, and other Northeastern states in advancing inclusive and sustainable development. The next steps on the MoU's operationalisation — including timelines for exploration activity — are awaited from the Centre.