New Delhi, Mar 25 (ANI): Bilateral Investment Promotion and Protection Agreement (BIPA) between India and Libya has become effective with the exchange of Instruments of Ratification (IsR) between them, here today.
Dr. Anup K. Pujari, Joint Secretary, Ministry of Finance, Government of India and Mohammed Saleh Ei-Saghier Milad, Director, International Legal and Treaties Department, Government of Libya exchanged the IsR at a ceremony presided over by L.M. Vas, Additional Secretary, Ministry of Finance.
With the exchange of IsR today, Libya becomes the 66th country with which our BIPA has become effective.
The Agreement was signed in Tripoli, Libya on May 26, 2007.
The Agreement requires both the countries to encourage and create favourable conditions for investors of each other to make investments in their territory and to admit investments in accordance with their laws.
Investments from either country in the territory of the other country are to be accorded national treatment and most favoured nation treatment implying that the investment will be provided a treatment which is not less favourable than that provided by the home country to investments of its own investors or investors from any other country.
Besides, investors are to be provided most favoured national treatment in respect of their investment. It also provides an elaborate dispute resolution mechanism, which includes recourse to negotiations, conciliation and international arbitration.
India has so far signed BIPA with 75 countries.
Of these, 65 have already come into effect. BIPA seeks to promote and protect investments from one country in the other country.
BIPAs facilitate bilateral investment flows and grant benefits of national treatment and most favoured nation. (ANI)