NEW DELHI: The new model bilateral investment treaty (BIT), which will address concerns of several countries and streamline investment negotiation procedures, while ensuring investor protection is in final stage and is likely to be approved by govt soon. The approval will pave the way for it to be rolled out along with trade agreements, with countries such as Australia and Canada, while also being used with partners such as the UK and the European Union.One of the key elements is reduction in the period to seek international arbitration to one year from five years at present, provided domestic remedies are exhausted.“The finance ministry has sent the draft note for approval and it will be approved soon. There are a few red lines, which are not being given up. The new BIT will continue to protect India’s sovereign rights on taxation and domestic courts. No tax related provisions will be part of it as it is a Parliamentary prerogative,” a senior official said. The Union cabinet is expected to approve the revised model BIT over next couple of weeks, replacing the contentious version of 2015, which was rejected by most countries.According to Unctad database, since 2018 only six countries have agreed to BITs with India, including Belarus, Kyrgyzstan, Brazil, UAE, Uzbekistan and Israel. India has already made concessions in case of UAE and Israel, while refusing to make any exception for the UK, EU or the four-nation European Free Trade Association and others with which trade agreements have been signed.“Under the previous framework, negotiations took place with 20-25 countries. Recent negotiations with countries such as UAE, Qatar and Oman have already diverged from that framework. India is currently negotiating BITs with four countries, including Canada and UK. And, these will be done under the new framework,” the official said.On Friday, commerce and industry minister Piyush Goyal said full FTA with Australia, which is under negotiaton, will come with an investment pact. “Now we have decided to work towards a very balanced, fair and equitable, comprehensive economic cooperation agreement, which will also take our relationship to greater heights. We are working with Australia to have a bilateral investment treaty also.” A BIT is an agreement between two countries to promote and protect investments made by their investors in each other’s territory. Under investment protection treaties, investors can take a sovereign govt to arbitration.