UAE takes up problems faced by Etisalat, Emaar, DP World in India.

NEW DELHI: India and UAE discussed an early resolution of the pending cases involving investment from Gulf companies such as Etisalat, DP World and Emaar to facilitate more investment from the region.

The matter was taken up in the second meeting of India-UAE High Level Joint Task Force on Investments in Mumbai, co-chaired by commerce and industry minister Anand Sharma and chairman of the Abu Dhabi Crown Prince Court Sheikh Hamed bin Zayed Al Nahyan.

"Discussions took place on expediting the resolution of current pending issues associated with existing UAE investments in India (Etisalat, Emaar and DP World), and a plan of action was agreed for the legacy issues sub-working group to address and resolve these issues," the government said in a statement on Monday.

India has assured UAE that it would try to ensure that a distinction is maintained between local promoters and foreign investors during investigation so that the latter was not harassed. During April-December 2013, UAE invested $223 million in India.

Last year, the Enforcement Directorate slapped a Rs 8,600-crore showcause notice on construction major Emaar MGF Land and its sister firms for purchasing agriculture land, which is not allowed under the foreign direct investment policy.

Telecom major Etisalat exited India operations after the Supreme Court cancelled 122 mobile licences of 10 telecom companies in the 2G spectrum case. The company has sought refund of the licence fee as well as bank guarantees. The two sides also agreed to cooperate on setting up a strategic petroleum reserve in India to further strengthen economic relations.

The reserve will be set up in a manner which would serve the common strategic interests of both countries and it would be based on the principles of long-term strategic partnership and cooperation.

"The decision was taken to establish another joint working group to make progress on this effort," the statement said. Sharma said India provided huge investment opportunities for Gulf firms in areas such as roads, power, civil aviation, ports, renewable energy and urban infrastructure.

On the Bilateral Investment Promotion and Protection Agreement, Al Nahyan said UAE was looking forward to the ratification of the pact and resolution of outstanding issues. It would serve as a platform for promotion and reciprocal legal protection of investments in both countries.

Source : economictimes.indiatimes.com