Krishna seeks protection of Indian investment
In a strongly-worded statement, visiting Indian Foreign Minister SM Krishna conveyed to the Nepali leadership that Nepal must develop an environment of trust and confidence to attract investment from India. Krishna also sought protection for Indian investors in Nepal.
Indian Foreign Ministers in the past had also raised the issue of security for Indian investment. However, Krishna’s statement on Thursday is a departure from the past when it comes to Indian investment in Nepal. This time, the message was loud and clear—that India wants action from Nepal. “I conveyed to the leadership of Nepal that Nepal must develop an environment of trust and confidence to attract investment from India and conveyed that Indian investors, who provided capital and employment opportunities in Nepal, should be given all due protection,” Krishna’s statement issued on Thursday said.
Krishna’s statement during his last visit to Nepal was more subdued. “The Minister of External Affairs of India pointed out that concerns remain about the business environment in Nepal affecting Indian investment and joint ventures,” the statement issued on Jan 17, 2010, read.
Safety of Indian joint ventures was one of the issues that Krishna raised during his meeting with Prime Minister Jhala Nath Khanal on Wednesday. Of late, Indian joint ventures in Nepal have been increasingly concerned about their security. In the last two years, hydropower projects with Indian investments have become the target of the UCPN (Maoist). GMR Group, that is developing the Upper Karnali and Upper Marshyangdi, has borne the brunt of Maoist ire.
“Indian companies are eager to do more to promote Nepal’s industrial manufacturing capabilities. In this context, I referred to the harassment being meted out to some of the larger Indian joint ventures in Nepal,” Thursday’s statement said.
The statement also talked about the royalty issue of United Telecom Limited (UTL). “Deputy Prime Minister Adhikari assured me that his government would amicably resolve issues concerning United Telecom Limited (UTL) at an early date in accordance with the earlier understandings between the two governments.” The UTL has been defying telecom regulator Nepal Telecommunications Authority (NTA)’s call to clear royalty dues and told the NTA that a “government-to-government” talks were going on to settle the issue.
Krishna also sought early formalisation of the Bilateral Investment Protection and Promotion Agreement (BIPPA) and the Double Taxation Avoidance Agreement (DTAA). India has been demanding for more than a decade now that Nepal sign the BIPPA. Through this agreement, India wants the protection of Indian investment in Nepal.
Earlier, Krishna held a meeting with representatives of the Nepal India Chambers of Commerce and Industry (NICCI). The NICCI representatives briefed Krishna on the constraints being faced by Indian joint ventures in Nepal. “The UTL royalty issue and Maoist obstruction of hydropower projects being developed by Indian companies featured in the talks,” a member of the NICCI said.
Posted on: 2011-04-22 09:05
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