Oil India Limited (OIL) and Assam Gas Company Limited have signed an agreement to form joint venture (JV) for city gas distribution (CGD) networks in six districts of Assam and Tripura.

The JV will lay, build and operate natural gas grids, provide piped natural gas to domestic and commercial establishments across Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur and Biswanath Charialiand and a few districts of Tripura. 

Besides, it will also set up compressed natural gas (CNG) stations across the states.

Assam Gas will have 51 per cent stake and OIL will have 49 per cent stake in the JV.