New Delhi | Union Home Minister Amit Shah on Thursday expressed confidence that the Armed Forces (Special Powers) Act (AFSPA) could be withdrawn from almost the entire Northeast by next year, citing significant improvements in the region’s security situation and progress in peace-building efforts.

Shah made the remarks after the signing of a tripartite Memorandum of Understanding (MoU) among the Centre, Assam and Nagaland aimed at facilitating oil and mineral exploration in the disputed border areas between the two states.

Describing the agreement as a milestone for the Northeast, the Union Home Minister said the gradual reduction of areas under AFSPA reflects the changing security landscape of the region and the success of ongoing peace initiatives.

“I am confident that barring one or two states, we will withdraw AFSPA from the entire Northeast next year,” Shah said.

The MoU is expected to revive hydrocarbon and mineral exploration activities in the Disputed Area Belt along the Assam-Nagaland border, where resource development had remained stalled for more than three decades due to territorial disputes and security concerns.

Calling the agreement a “historic moment”, Shah said it has removed a long-standing obstacle to development and aligns with Prime Minister Narendra Modi’s vision of transforming the Northeast into a major growth hub.

According to Shah, the region possesses vast reserves of crude oil, natural gas and other valuable minerals that have remained largely untapped because of law-and-order challenges and unresolved administrative issues.

“This will open new avenues for mineral exploration in the Northeast. The area not only has oil and gas but huge mineral deposits, which could not be explored due to law and order issues,” he said.

Highlighting the economic significance of the agreement, Shah said oil production from the region could increase substantially from the current levels of around 1,000 to 1,500 barrels per day. He also claimed that a single oil field in the area could contain recoverable resources valued at more than ?15,000 crore.