Amid spate of show cause notices served by foreign companies, the government has decided to put on hold all Bilateral Investment and Protection Agreements (BIPA) negotiations, Parliament was informed today.
As many as eight foreign investors have served notices on the government invoking provisions of the BIPA, Minister of State for Finance Namo Narain Meena said in a written reply to the Lok Sabha.
In view of an "adverse arbitration" notice in the case of White Industries Australia Ltd and various other dispute or arbitration notices, "the government has decided to put all BIPA negotiations on hold", Meena said.
The foreign investors which have served notice under BIPA include Vodafone International Holdings, CC/Devas (Mauritius), Germany's Deutsche telekom, Russia's Sistema Joint Stock Financial Corporation and Children Investment Fund (UK).
"The government has decided to handle various disputes through the mechanism of an inter-ministerial group chaired by the Secretary of the Administrative Ministry concerned," Meena said.
The objective of BIPAs is to promote and protect the interests of investors of either country in the territory of other nation.
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.
