Tax uncertainty & regulatory issues major impediments in India foreign investments: Joe Oliver

NEW DELHI: Canada's natural resources minister Joe Oliver said uncertainty over tax and regulatory issues are major impediments in foreign investments in India.

"Companies operating in foreign countries want certainty and predictability. It's important that those issues are addressed," the minister told reports after a key note address on 'India's energy security: Canada, a partner of choice', organised by Ficci.

Addressing the industry he said some companies had raised concerns over fiscal and regulatory uncertainties but declined to name them. The minister's remark is important as the two countries are in advance stage of signing a free trade agreement and has already held sixth rounds of discussions.

The two countries plan to sign the agreement by 2013," Canada's high commissioner to India, Stewart G. Beck said.

Investors from both sides have some regulatory concerns, which are being addressed, Beck said.

After meeting the Canadian delegation on Monday, minister of state for planning, science & technology and earth science Ashwani Kumar said India had assured an investor-friendly regime to Canada. "India is fully committed to investor friendly regime and respects the sanctity of contracts and would ensure a stable fiscal and statutory regime," Kumar said.

Oliver invited Indian investments in Canadian energy sector saying that the country had made its environment laws investors' friendly.

"India is the right market for Canadian natural resources whereas India can look to Canada as a safe and reliable source of energy provider. The ties between India and Canada are steeped in history and rooted in friendship, and to these bonds we are adding growing connections of cooperation in the natural resources sector," he said.

RS Sharma, chairman, Ficci Hydrocarbon committee & former chairman ONGC called Canada a natural ally of India in energy area. "For energy security, Canada has emerged as a significant and potential partner. Canada has huge shale gas reserves, and India can create equity partnership with Canada in energy sector," he said.

Canada can provide uranium to India for producing nuclear energy for peaceful purposes, Ficci President R V Kanoria said.