The Department of Telecommunications (DoT) is planning to approach all foreign telecom investors for their views to settle the issues related to the bilateral investment promotion and protection treaty (BIPA), say news reports.
In its draft letter, DoT will ask foreign players to suggest ways to settle the licence cancellation issue amicably. Foreign investors such as Sistema, Uninor have invoked BIPA to protect their investments after the Supreme Court cancelled their licences February 2012. These companies were issued licences in January 2010.
DoT plans to send a draft letter to all the aggrieved foreign investors as it is of the view that the alleged dispute between the investor and the government has not arisen yet. DoT is assuring foreign investors about the government?s commitment to hold talks with them and protect their rights in the country. In the draft DoT has stated that the Supreme Court judgment is bounding on Indian telecom players as well and the foreign players are not being discriminated against.
In the letter, DoT has reiterated that all the issues related to licensing are being dealt with as per the law of the land on fair and equitable basis.
At the same time, DoT is also putting together a legal team to handle the case arising out of the BIPA treaties in case negotiations fail. Additionally, the government is working to formulate a blueprint to change the rules of engagement under BIPA treaties. Under the new plan, the government is making it clear to foreign investors that they cannot seek protection under the various BIPA treaties on issues related to taxation, indirect foreign shareholders and minority stakeholders. The government has constituted an inter-ministerial panel to examine all the 82 bilateral treaties signed by India with other countries to identify areas that could attract legal action from aggrieved foreign investors.
