Bhopal case might affect investment: US warns India | delhi | Hindustan Times
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Bhopal case might affect investment: US warns India

A senior US government official has warned that India's pursuing Dow Chemicals for compensation in the Bhopal gas case could affect US investment in India, say emails acquired by Times Now.

delhi Updated: Aug 19, 2010 00:51 IST
HT Correspondent

A senior US government official has warned that India's pursuing Dow Chemicals for compensation in the Bhopal gas case could affect US investment in India, say emails acquired by Times Now.

The warning followed a request by Montek Singh Ahluwalia for US assistance with the World Bank.

Indian officials said Washington's view was irrelevant. New Delhi's policy would be governed by the group of ministers' decision to request for ex-Union Carbide chief Warren Anderson's extradition and that Dow Chemicals had already been named a party in the Bhopal case before Supreme Court.

Ahluwalia had requested US support for relaxing a World Bank lending limit.

He noted that India was "about to hit the arbitrary single borrower limit" of the World Bank and this would "cut new lending to India drastically unless the limit is relaxed."

In response, US Deputy National Security Advisor for International Economic Affairs, Michael Froman, said his government would "look" into the matter.

He then added, "While I've got you, we are hearing a lot of noise about the Dow Chemical issue" and "we want to avoid developments which put a chilling effect on our investment relationship."

Asked about this email exchange on television, Ahluwalia said "I do not interpret any communication from Froman as indicating the two [World Bank and Dow Chemical] are linked." The Bhopal issue was "subjudicial" and "going through due process," he said.