Business

Model Text for the Indian Bilateral Investment Treaty

Model Text for the Indian Bilateral Investment Treaty

Model Text for the Indian Bilateral Investment Treaty

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for the revised Model Text for the Indian Bilateral Investment Treaty. The revised Indian model text for Bilateral Investment Treaty (BIT) will replace the existing Indian Model BIT. The revised model BIT will be used for re-negotiation of existing BITs and negotiation of future BITs and investment chapters in Comprehensive Economic Cooperation Agreements (CECAs)/ Comprehensive Economic Partnership Agreements (CEPAs) / Free Trade Agreements (FTAs).

The new Indian Model BIT text will provide appropriate protection to foreign investors in India and Indian investors in the foreign country, in the light of relevant international precedents and practices, while maintaining a balance between the investor’s rights and the Government obligations.

A BIT increases the comfort level and boosts the confidence of investors by assuring a level playing field and non-discrimination in all matters while providing for an independent forum for dispute settlement by arbitration. In turn, BITs help project India as a preferred foreign direct investment (FDI) destination as well as protect outbound Indian FDI.

The essential features of the model BIT include an “enterprise” based definition of investment, non-discriminatory treatment through due process, national treatment, protections against expropriation, a refined Investor State Dispute Settlement (ISDS) provision requiring investors to exhaust local remedies before commencing international arbitration, and limiting the power of the tribunal to awarding monetary compensation alone. The model excludes matters such as government procurement, taxation, subsidies, compulsory licenses and national security to preserve the regulatory authority for the Government.

Background

The first BIT was signed by India on March 14, 1994. Since then, till date, the Government of India has signed BITs with 83 countries. These BITs were largely negotiated on the basis of the Indian Model BIT of 1993.

Considerable socio-economic changes have taken place since 1993 when the Model text of BIT was first approved. The nature of government regulation concerning foreign investment has evolved. A wide variety of laws now regulate investments both at the central and the state levels. During the last few years, significant changes have occurred globally regarding BITs, in general, and investor-state dispute resolution mechanism in particular.

More in Business

  • Top reason why Samsung Galaxy Note 7 phablet battery explodes

    Top reason why Samsung Galaxy Note 7 phablet battery explodes Views Headlines Desk, If you were among...

  • UPSSSC Amin Admit Card 2016 Download from www.upsssc.gov.in, Written Exam tomorrow, all details

    UPSSSC Amin Admit Card 2016 Download from www.upsssc.gov.in, Written Exam tomorrow, all details This is a time that hundreds of thousands of hopefuls of Uttar Pradesh Subordinate Services Selection Commission (UPSSSC) have been awaiting for a very long time. Admit cards for the Uttar Pradesh Subordinate Services Selection Commission (UPSSSC) are on...

  • Muslim University VC felicitates AMU Formula Team

    Muslim University VC felicitates AMU Formula Team ALIGARH: The Formula Race Car team comprising of Aligarh Muslim University’s Engineeruing College students was recently felicitated by AMU Vice Chancellor Lt General Zameer Uddin Shah (retd) at the Vice Chancellor’s Office. The team was felicitated on their return from London, where they had gone...

  • Union Govt. to give all possible help for ‘mithun’ conservation: Minister

    Union Govt. to give all possible help for `mithun’ conservation: Minister New Delhi: The Government will give all possible help for conservation of mithun, the only animal that is recognized as the State Animal of Arunachal Pradesh and Nagaland. Stating this the Union Minister of Agriculture and Farmers Welfare Shri Radha Mohan...

  • Indian govt. says over 25 lakh LPG connections released under PM Ujjwala Yojana

    Indian govt. says over 25 lakh LPG connections released under PM Ujjwala Yojana New Delhi: 25.44 lakh LPG connections have been released to women of BPL families as on today under the Pradhan Mantri Ujjwala Yojana. The scheme which was launched by Honorable Prime Minister in Balia, Uttar Pradesh on 01st May,...

  • CCTV at Installed at 344 Railway Stations

    CCTV at Installed at 344 Railway Stations At present, Close Circuit Television Cameras (CCTV) have been installed at 344 railway stations over Indian Railways. Prevention and detection of crime, registration of cases and their investigation over Railways is the statutory responsibility of States which is being discharged by them through the Government...

  • Last date for Filing of Income Tax Returns Extended to 5th August, 2016

    Last date for Filing of Income Tax Returns Extended to 5th August, 2016 New Delhi: The due date for filing of Income tax returns by certain persons under the Income Tax Act is 31st July of the following year. However, taking into consideration the strike by Public Sector Banks (PSBs) on Friday,...

  • Three teenage Pokemon Go players robbed in London – Officials ask witnesses to come forward

    Three teenage Pokemon Go players robbed in London – Officials ask witnesses to come forward It is...