Indo-Myanmar pact on energy security soon

India will finally sign an investment treaty "" the Bilateral Investment Promotion and Protection Agreement (BIPA) "" with Myanmar in the first week of April. The pact is going to be of critical interest to a host of oil majors looking at investments in the resource-rich country.

According to sources, the treaty will be signed with the approval of Prime Minister Manmohan Singh. The Cabinet ratification, they say, will come later.

A BIPA ensures fair and equitable treatment to investments in each other's territory. It also offers legal security and dispute resolution through international mechanism. India has such an agreement with 62 countries.

The treaty also provides for free transfer of capital to maintain and increase investments, operating profits, including dividend and interests in proportion to their shareholdings, and repayment of loans. India would be able to access oil and gas in Myanmar under the pact as part of its drive for energy security.

Sources say there is a scope for bilateral negotiations as many restrictions exist for investment in politically-sensitive sectors such as agriculture, retail trading, railways and real estate.

Sources said while India provides national treatment to foreign investors in the post-investment phase, it will be difficult to get political consensus on giving the same treatment in the pre-investment stage.