Assam Unveils Policy to Revitalize Energy Sector through Oil Exploration
The Assam government in India has introduced a new hydrocarbon policy to boost oil exploration and production. The Assam Hydrocarbon Exploration, Production and Upstream Ecosystem Development Policy, 2026, came into effect on August 21, 2026, with the aim of revitalizing the state's energy sector.
The policy offers financial incentives to reduce the burden on energy companies. It includes GST-related exemptions and concessions on land premiums, as well as support measures for modern drilling rigs and specialized equipment. If an exploration project does not result in oil or gas discovery, the government will waive land premium costs, lowering the financial risk for companies.
Assam currently produces around 4 million metric tonnes of crude oil annually, but industry forecasts predict a potential structural decline in output over the next decade if no new major discoveries are made. The policy targets underexplored areas such as Dhemaji and Biswanath Chariali to reverse this trend.