New Delhi, Dec 17 (KNN) With the view to boost investment in the country, the Union Cabinet chaired by Prime Minister Narendra Modi has given its nod for the revised Model Text for the Bilateral Investment Treaty (BIT) which will provide appropriate protection to foreign investors in India and Indian investors in the foreign country.
 
The revised Indian model text for BIT will replace the existing Indian Model BIT. The revised 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 model of BIT will provide protections to both the foreign and domestic investors in the light of relevant international precedents and practices, while maintaining a balance between the investor's rights and the Government obligations, the Union Cabinet said.
 
“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,” Cabinet said in an official statement.
 
The revised BIT will 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,” said the Cabinet. (KNN Bureau)