PMO ASKS COMM MIN TO EXAMINE MODEL TEXT OF BIT

These agreements are important as India has earlier lost 2 international arbitration cases against British telecom giant Vodafone and Cairn Energy plc of the UK over the retrospective imposition of taxes

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According to sources, the Prime Minister's Office (PMO) has asked the commerce ministry to review the model text of the bilateral investment treaty (BIT) and suggest modifications to further improve the ease of doing business.

The exercise assumes significance as only seven nations have accepted the existing model text treaty, and most of the developed nations have expressed their reservations on the text with regard to provisions like the resolution of disputes.

These investment treaties help in protecting and promoting investments in each other's countries.

These pacts are important as India has earlier lost 2 international arbitration cases against British telecom giant Vodafone and Cairn Energy plc of the UK over the retrospective levy of taxes.

On Monday, as per the sources, an internal discussion will be held at the Commerce Ministry on the model text of the treaty with experts and lawyers.