The Government of Nepal and the Government of India hereinafter referred to as the Contracting Parties ; Desiring to create conditions favourable for fostering greater investments by investors of one State in the territory of the other State; Recognising that the encouragement and reciprocal promotion and protection of such investments are essential to stimulate private sector initiative and will increase prosperity in both States; Have agreed as follows:. ARTICLE 1 Definitions For the purposes of this Agreement: a companies mean: i ii b in respect of Nepal: corporations, firms and associations incorporated or constituted or established under the law in force in Nepal; in respect of India: corporations, firms and associations incorporated or constituted or established under the law in force in any part of India. In respect of India: natural persons deriving their status as Indian nationals from the law in force in India;. ARTICLE 2 Scope of the Agreement This Agreement shall apply to any investment by investors of either Contracting Party in the territory of the other Contracting Party admitted in accordance with its laws and regulations, whether made before or after coming into force of this Agreement, but shall not apply to any dispute concerning an investment which arose, or any claim which was settled, before its entry into force. ARTICLE 3 Promotion and Protection of Investments 1 Each Contracting Party shall encourage and create favourable condition for investors of the other Contracting Party to make investments in its territory, and admit such investments in accordance with its policies, laws and regulations. Investments and returns of investors of each Contracting Party shall at all times be accorded fair and equitable treatment in the territory of the other Contracting Party.
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The ministry said Basnet approved the draft after holding inter-ministerial discussions. Bishnu Prasad Dhakal, under secretary at the Industrial Promotion Division of the Industry Ministry, said the draft sent to China was similar to that signed with India.
He said the Industry Ministry would also send a three-point document to China soon, justifying the modification Nepal made in the draft. Dhakal said the draft forwarded to China also incorporates issues of investment promotion and security as well as compensation clauses. Article 6 of the Bippa signed with India provisions compensation to investors if they suffer losses due to war, armed conflict and state of emergency. However, government officials and private sector representatives say the government has to assure investors on the security of their investments to attract foreign investment.
Given growing Chinese investment in Nepal, stakeholders say the Bippa will help boost the investment further. Dhakal said Bippa with China would be instrumental in attracting a lot of investment from the northern neighbour and convey a message to the world that Nepal has a conducive business environment.
According to ministry officials, Minister Basnet endorsed the revised draft only after carrying out a thorough study on provisions, and inter-ministerial discussions. Money Nepal forwards revised Bippa draft to China The government has finally communicated with China, stating its readiness to sign the Bilateral Investment Promotion and Protection Agreement.
Published at : December 12, Updated at : December 12, The government has finally communicated with China, stating its readiness to sign the Bilateral Investment Promotion and Protection Agreement Bippa. The northern neighbour had proposed the agreement signing three years ago. Sanjeev Giri. Related News. Most Read from Money. Editor's Picks.
India-UAE BIPPA: Government builds safeguards to protect itself
It was published in Republica , October 26, , p. Rarely has the interest of general public been so intense on a bilateral economic issue and support of private sector so high than now. Before breaking Nepal-India BIPPA down to the simplest terms, let me at the outset argue that most of the remonstrations have been outright illogical, misinformed, and pitched to score political points. BIPPA is a legal instrument that establishes specific rights and obligations to meet the primary purpose of protecting foreign investments against discriminatory measures i.
BIPPA Agreement between Nepal & India_Final 21 Oct
Commerce Secretary Shubhashish Bose, who had led the Bangladeshi delegation, stated that as BIPPA will facilitate bilateral investment by ensuring necessary protection to investors of both countries, it would be best to conclude BIPPA at the earliest. Similarly, Bangladesh assured that their concerned authority will examine the draft of BIPPA upon its receipt and that the authority would take the necessary measures for early conclusion of the agreement between the two nations. In terms of finalising the operational modality for transit cargo between Nepal and Bangladesh, the latter has suggested Nepal to submit its revised draft on the issue through diplomatic channel for its consideration and assured it would be taken into account on a priority basis. The commerce secretaries, however, failed to come to an agreement on duty-free market access to Nepali products in the Bangladesh market and preferential market access to 50 Bangladeshi products in Nepali market, as both sides agreed that the list needed to be revised. Bangladesh has suggested Nepal to share its new product list through diplomatic channel.