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Indo-Myanmar pact on energy security soon
March 31, 2008: India will 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.
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.
Source: Business Standard