BILATERAL INVESTMENT PROMOTION AND PROTECTION AGREEMENTS (BIPA)

             As part of the Economic Reforms Programme initiated in 1991, the foreign investment policy of the Government of India was liberalised and negotiations undertaken with a number of countries to enter into Bilateral Investment Promotion & Protection Agreement (BIPAs) in order to promote and protect on reciprocal basis investment of the investors. Government of India have, so far, (as on 9th December 2011) signed BIPAs with 82 countries out of which 72 BIPAs have already come into force and the remaining agreements are in the process of being enforced. In addition, agreements have also been finalised and/ or being negotiated with a number of other countries.

The objective of Bilateral Investment Promotion and Protection Agreement is to promote and protect the interests of investors of either country in the territory of other country. Such Agreements increase the comfort level of the investors by assuring a minimum standard of treatment in all matters and provides for justifiability of disputes with the host country.

           BIPAs were intended to provide fair and equitable treatment to the investors of either country in the territory of the other country and include provisions for settlement of disputes between an investor and a contracting party shall, as far as possible, be settled amicably through negotiations between the parties to the dispute. In case a dispute is not settled amicably, a provision exists for arbitration.

BILATERAL WORRIES

Notices served by foreign investors against India under BIPAs and CECA

* Devas Employees Mauritius Pvt Ltd, Mauritius under BIPA with Mauritius 

* Sistema Joint Stock Financial Corporation, Russia under BIPA between India and Russia 

* Telenor Asia Pte Ltd, Singapore under CECA between India and Singapore   

* Capital Global Limited and Kaif Investment Limited, both Mauritius based-investors in Loop Telecom Limited under BIPA with Mauritius   

* Vodafone International Holdings BV, the Netherlands, under BIPA with the Netherlands   

* The Children’s Investment Fund Management, United Kingdom under BIPA with the UK and Cyprus