The government said Russian telecom player Sistema has threatened to initiate proceedings against India after August 28,if the dispute regarding 2G issue was not settled within that time.
“Sistema has stated that in case the dispute (regarding 2G issue) is not settled amicably through Conciliation by August 28,2012,Sistema reserves its right to commence proceedings against India on the basis of any applicable intergovernmental investment treaty,” Finance Minister Pranab Mukherjee said in a reply in the Rajya Sabha.
Last month,the Supreme Court cancelled 122 licenses granted in 2008 under then Telecom Minister A Raja. The SC order has had a major impact on foreign companies which are operating in India in partnership with various Indian entities.
The Finance Minister said,two letters,dated February 28,2012 have been received on behalf of Sistema Joint Stock Financial Cooperation,Russian Federation (Sistema) the foreign investor in Sistema Shyam Teleservices Ltd to settle dispute arising out of the Supreme Court judgement on February 2,2012.
Sistema has sought the opportunity to attempt to resolve the dispute through conciliation in accordance with agreement between the government of India and the Russian Federation on mutual promotion on investment,he said.
Mukherjee also said that the Finance Ministry has been negotiating,since early 1990s,Bilateral Investment Promotion and Protection Agreement (BIPA) to provide fair and equitable treatment to investors of either country in the territory of the other country.