The Indian government is moving fast to assuage the UAE government's concerns regarding investments from that country in India, an assurance that is seen as a crucial perquisite to successful completion of the Jet-Etihad deal. Prime Minister Manmohan Singh will be visiting Abu Dhabi later this month to discuss, among other things, an investment protection treaty between the two countries. The bilateral treaty will assure the UAE that investments made by its companies in India will be protected from unilateral, arbitrary action. The timing of the visit is crucial as it comes at a time talks between Etihad and Jet Airways have been deadlocked due to concerns expressed by the foreign airline over the safety of its investment in India's second largest airline. Etihad and the UAE government are seeking assurances that their investment will not go the way of Etisalat, a UAE telecom company whose licences were cancelled by the Supreme Court last year as part of investigations into the issue of 2G telecom licences in 2008.

Source - http://economictimes.indiatimes.com