Investments Current Affairs

Union Cabinet approves JIN pact between India and Bangladesh

The Union Cabinet has given its approval for the Joint Interpretative Notes (JIN) on the Agreement between India and Bangladesh for the Promotion and Protection of Investments.

Decision in this regard was taken at the Union Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi.

Purpose of JIN

In general, JIN plays an important supplementary role in strengthening the investment treaty regime. Looking at increasing trend in Bilateral Investment Treaty (BIT) disputes, issuance of such statements is likely to have strong persuasive value for resolving disputes before arbitration tribunals. Moreover, such pro-active approach by states also can foster more predictable and coherent reading of treaty terms by tribunals.

Approval of JIN

The approval JIN by the Union Cabinet will impart clarity to the interpretation of the existing agreements between India and Bangladesh for the Promotion and Protection of Investments (BIPA). The JIN between India and Bangladesh includes interpretative notes to be jointly adopted for many clauses, including, the definition of investor, investment, exclusion of taxation measures, National Treatment (NT), Fair and Equitable Treatment (FET) and Most Favoured Nation (MFN) treatment, essential security interests, expropriation and Settlement of Disputes between an Investor and Contracting Party.

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FIPB clears 6 FDI proposals worth Rs 1,200 crore

The Foreign Investment Promotion Board (FIPB) has approved six Foreign Direct Investment (FDI) proposals worth Rs 1,200 crore. Decision in this regard was taken by FIPB meeting headed by Economic Affairs Secretary Shaktikanta Das.

It has approved the proposals of, Star Den Media Services, Sanofi Synthelabo India, Idea Cellular Infrastructure Services, Menarini India, Boehringer Ingelheim India and Recipharm Participation.

Background

India allows FDI in most sectors through the automatic route, but in certain segments considered sensitive for the economy and security, then those proposals first have to be cleared by FIPB. The Union Government has taken a slew of measures in the recent past to boost foreign direct investment into the country. The FDI in the country has grown to $40 billion in the financial year 2015-16 as against $30.94 billion in the previous FY 2014-15.

About Foreign Investment Promotion Board (FIPB)

The FIPB is inter-ministerial body that offers a single window clearance for applications on Foreign Direct Investment (FDI) that are under the approval route. The finance secretary is the chairman of the FIPB. It is housed in the Department of Economic Affairs, Union Ministry of Finance. Presently, FDI proposals up to 3,000 crore rupees are cleared by the FIPB. However, those proposals involving FDI of more than 3,000 crore rupees are given final clearance by the Cabinet Committee on Economic Affairs (CCEA).

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