New Delhi: The Cabinet has approved signing of the Bilateral Investment Treaty (BIT) with Cambodia, the first agreement to be inked on the basis of the model BIT text.

The decision was taken during the cabinet meeting chaired by Prime Minister Narendra Modi.

The treaty seeks to promote and protect investments from either country in the territory of the other country with the objective of increasing bilateral investment flows, an official statement said. It said that the treaty encourages each country to create favourable conditions for investors of the other country and to admit investments in accordance with its laws. It “is the first Bilateral Investment Treaty in accordance with the text of the Indian Model BIT, approved by the Cabinet in December 2015,” it added. — PTI