US to issue investment guarantees for India projects, no liability to India

This is a supplementary agreement between India and the United States that expands the scope of US investment guarantees for private enterprises investing in India. It allows the US government to issue additional forms of guarantees authorized by US legislation to facilitate economic development in India.

The agreement involves the Government of India (specifically the Department of Economic Affairs, Ministry of Finance) and the Government of the United States of America. It affects private enterprises and US nationals investing in projects approved by the Indian government.

• The US government will issue investment guarantees providing coverage authorized by applicable US legislation for appropriate investments in India.
• There will be no claim for reimbursement against the Government of India for payments made by the US on extended risk guarantees.
• Intergovernmental negotiation and arbitration procedures apply to additional guarantees only for losses attributable to acts of the Indian government involving liability under public international law.
• The principle from paragraph 3 of the 1957 exchange of notes applies to property or commercial claims transferred to the US in exchange for compensation.
• Obligations of both governments regarding risks covered in the 1957 and 1959 agreements remain unchanged.
• No other obligations are required of the Government of India regarding the additional forms of guarantees.

Written from the document by AI, and checked against it. The original below is authoritative.

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