Nagaland Chief Minister Neiphiu Rio on Thursday, June 11, 2026, expressed gratitude to the Government of India for facilitating a tripartite memorandum of understanding that provides for equal sharing of proceeds from mineral oil operations in the Disputed Area Belt (DAB) between Nagaland and Assam. The Chief Minister also called for the early resumption of mineral oil operations across the state, while underscoring the importance of protecting Nagaland's special constitutional provisions.

Context

Rio stated he was 'grateful to GoI for facilitating the Tripartite MoU on equal sharing of proceeds from mineral oil operations in DAB between Nagaland and Assam.' He added that he looks 'forward to early resumption of mineral oil operations for the entire State while safeguarding its special constitutional provisions.' The post signals a significant step toward resolving a long-running resource dispute that has kept oil exploration in the border belt suspended for decades.

The Disputed Area Belt refers to contested border zones between Nagaland and Assam where territorial claims by both states have historically stalled hydrocarbon development. The new MoU, brokered by the Government of India, provides for an equal split of revenues from any oil operations conducted in this sensitive zone.

Policy Backdrop

Article 371A of the Indian Constitution, inserted in 1963, grants Nagaland exclusive rights over its land and natural resources, requiring the state's concurrence before any central legislation on these subjects can apply. This asymmetric constitutional protection has been a central concern in any negotiation involving resource extraction in Nagaland or its border areas.

Inter-state boundary disputes between Nagaland and Assam have persisted since the 1960s, with the central government periodically intervening to maintain peace and enable development. Oil exploration in the border belt has remained largely suspended due to unresolved territorial claims and local opposition, leaving potentially significant hydrocarbon assets idle for years.

The tripartite structure of the MoU — involving Nagaland, Assam, and the Government of India — reflects a model of negotiated federal resource-sharing that the Centre has increasingly favoured over protracted litigation in managing Northeast India's complex inter-state disputes.

Stakeholders and Impact

The agreement has direct implications for Nagaland's tribal communities, who have historically been wary of resource extraction that bypasses customary land rights enshrined under Article 371A. The equal-sharing formula is designed to address both states' fiscal interests while providing a legal framework that does not prejudice the underlying boundary question.

Oil exploration companies — including public-sector undertakings that have long sought access to the belt — stand to benefit from a clearer operational mandate once resumption is authorised. The deal also aligns with national energy-security objectives that seek to revive idle hydrocarbon assets across the Northeast, a region estimated to hold substantial untapped reserves.

For Assam, which hosts major oil and gas infrastructure along its border with Nagaland, the MoU offers a pathway to monetise resources in zones that have been commercially dormant. Both state governments are expected to gain additional non-tax revenues once operations resume.

What's Next

Chief Minister Rio's explicit call for 'early resumption' of mineral oil operations suggests that the political groundwork is in place, but operational timelines remain to be announced. Any restart will likely require coordination with the relevant exploration agencies and further consultations with tribal bodies to ensure compliance with Article 371A protections.

Observers will also watch whether the MoU faces legal challenges that test its compatibility with Nagaland's special constitutional status, or whether it serves as a template for resolving other resource disputes along the Assam-Nagaland border. The broader success of this arrangement could shape how the Centre approaches similar federal resource conflicts across the Northeast in the years ahead.