The Assam Cabinet has approved the Assam Hydrocarbon Exploration, Production and Upstream Ecosystem Development Policy, 2026 to encourage companies to undertake fresh exploration of oil and other hydrocarbon resources in the State.

Why is the Policy Needed?

• Assam has not witnessed any major mineral resource discovery in the last two decades, except limestone deposits in Dima Hasao.
• Oil companies continue to operate existing wells but are reportedly reluctant to undertake new exploration because of high costs and uncertainty over whether commercially viable reserves will be discovered.
• The State government has warned that without new discoveries, oil production could begin declining after about a decade.

Key Features of the Policy

• The policy seeks to attract fresh investment in exploration and production by providing incentives to companies undertaking exploration activities.
• Proposed incentives include benefits related to Goods and Services Tax and land premiums, described by the State government as “symbolic benefits”.
• The broader objective is to create a more supportive upstream ecosystem, covering exploration and production-related activities.

Other Major Cabinet Decisions

The Cabinet also approved several measures with wider governance and social implications:

• Private coaching institutions: Registration will become compulsory for institutions having more than 50 students. 
  • Building standards and mandatory mental health counselling will also be introduced to protect students.
• Cooperative societies: Registration will become online and paperless, with automatic registration within 30 days of application. 
  • Dairy cooperatives are proposed to receive registration within one day.
• Child protection: The Cabinet approved the Assam State Child Protection Policy, 2026, along with rules relating to juvenile justice and the care and protection of children.
• Labour governance: Rules for implementing the two labour codes in Assam were approved.
• Higher education: More than 500 bighas of land were allocated for IIM Guwahati and 200 bighas for Azim Premji University at Palashbari.

Exam Hook – Prelims

Consider the following statements regarding Assam’s Hydrocarbon Exploration, Production and Upstream Ecosystem Development Policy, 2026:

1. It seeks to encourage fresh exploration of hydrocarbon resources in Assam.
2. It proposes incentives related to Goods and Services Tax and land premiums.
3. It aims only at regulating existing oil wells and does not promote new exploration.

Which of the statements given above is/are correct?

Answer: 1 and 2 only.