India, Bangladesh ink pact on investment protection, promotion

Giving a boost to bilateral economic and security ties, India and Bangladesh today signed an agreement on investment protection and promotion according each other the Most Favoured Nation status in investments and resolved to jointly combat terrorism in all its forms.

Culminating External Affairs Minister SM Krishna's talks with Bangladesh Premier Sheikh Hasina and his counterpart Dipu Moni here, the two countries inked a Bilateral Agreement on Promotion and Protection of Investments (BIPPA) under which investments of either country would not be nationalised or expropriated except for public purpose and that too against "fair and equitable compensation."

The 10-year agreement also provides for repatriation of capital investments, non-operating profits, loan repayments, royalty payments and service fees on a non-discriminatory basis.

The agreement also envisages that national treatment and Most Favoured Nation treatment to be accorded by either country to investments from each other.

The accord was signed by Indian High Commissioner to Bangladesh Rajeet Mitter and Bangladesh High Commissioner to India Tariq A Karim in the presence of Krishna and Moni.

The two countries also signed an agreement under which India would allow transit of trucks carrying goods from Bhutan to Bangladesh, nine months after a similar deal was inked to enable Nepal and Bangladesh to trade through Indian territory.