Investor-State Disputes in India's Energy Sector : Balancing Foreign Investments with National Energy Security Concerns.

Abhishek Rana

The full chapter may be found by clicking on the PDF link to the left.

Every host state seeking an investment in their energy sector offers favourable conditions to foreign investors through bilateral investment treaties (BITs), guaranteeing the investors protection from any action(s) that may harm their investment. Thus, a State creates its investment policies in such a way which maintain the balance between its investment policies and socio-economic concerns. This forces states take measures that may upset the investors, consequently leading to disputes. Such disputes affect the conditions and likelihood of future investments in the host state, occasionally triggering calls for reforms in the investment regimes. This paper studies the nature and kind of disputes arising in the energy sector, and how in the Indian context, such disputes have resulted in a change in the country’s energy policies. The paper then scrutinizes old investment treaties and evaluates their success in addressing national energy security concerns. Lastly, it studies the implications of the new Indian model BIT on the energy sector and how it may help India achieve its long-term energy security plans.