The Government is in favour of an out-of-court settlement with Sistema on the 2G licence issue.

A high-powered team has been put in place to develop the broad framework for negotiating with the Russian major. The team will comprise legal professionals picked by the Ministry of External Affairs.

This comes after the Russian conglomerate Sistema JSFC sent two letters to the Government seeking prompt resolution of the 2G imbroglio.

The Russian giant, which owns 56 per cent in Sistema Shyam, said the Indian Government is bound under a bilateral treaty to protect its investments.

The Department of Telecom was of the view that the company cannot invoke the bilateral treaty because even Indian companies have been impacted by the Supreme Court's February ruling. But an inter-ministerial panel has decided to take a softer approach. During a recent inter-ministerial meeting, External Affairs Ministry officials expressed concern that if there is a deadlock on the issue, Indian investments in Russia, such as those made by ONGC Videsh, could get affected.

Sistema had invoked the bilateral investment treaty signed between India and Russia and set a deadline of August 28 to resolve the dispute.

“It has been decided to engage Sistema through a dialogue. A substantive part of the negotiations will be carried out after the high-powered team gives its advice,” said a senior member of the Inter-Ministerial Group.

The official added that the Russian side has conveyed its willingness to participate in the auction as long as the policy was right.

> tkt@thehindu.co.in

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