New Delhi/IBNS: The governments of Assam and Arunachal Pradesh on Thursday signed an agreement to resolve the decades-old boundary issues between both states.

The memorandum of understanding (MoU) was signed by Assam Chief Minister Himanta Biswa Sarma and his Arunachal Pradesh counterpart Pema Khandu, in the presence of Union Home Minister Amit Shah, Union Law Minister Kiren Rijiju and other dignitaries at the Ministry of Home Affairs (MHA) in the North Block here.

The latest development comes following a meeting between both the CMs of the North Eastern states on boundary issues in Guwahati recently.

Speaking on the occasion, Shah congratulated both the CMs and termed the agreement historic.

He said it was a red letter day for Assam and Arunachal Pradesh as the long pending boundary issues were resolved amicably.

The Home Minister said the boundary settlement would usher in all-around development and peace in the Northeastern region.

Shah informed that 123 disputed villages on both sides of the inter-state border along the 800-km long stretch have been resolved once and for all under the agreement, and at a time when the country is celebrating its 75th year of Independence.

"This is a huge achievement," Shah added.

Himanta Biswa Sarma termed the signing of the MoU as historic and said it would bring peace and prosperity to the region.

"Today is a 'historic' day. I express my gratitude to the people of Assam and Arunachal Pradesh," Sarma said.

He also expressed hope that boundary issues between Mizoram and Nagaland will also be resolved soon.

Khandu, in his address, termed the settlement of the boundary between Assam and his state as momentous and historic and exuded optimism that it would bring about a sea change on the peace and development front.

Assam shares a boundary of more than 800 km with Arunachal Pradesh.

Last year, Assam and Meghalaya signed an MoU in the month of March to resolve boundary disputes between both states. They had agreed to resolve six out of the 12 areas spread across around 39 sq km.