'Treaty should not be 'victim' in Mittal bid row'

Luxembourg has said the mutually beneficial treaty with India should not fall 'victim' to the controversy involving a business deal.

Unfazed by reports that the proposed Double Taxation Avoidance Agreement (DTAA) with India could be threatened because of the Mittal takeover row, Luxembourg has said the mutually beneficial treaty should not fall "victim" to the controversy involving a business deal.

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Luxembourg Ambassador Paul Steinmetz said the second round of talks to finalise the agreement was slated to be held "very soon" and the Indian government had not conveyed anything officially regarding cancellation of the meeting.

"We have not been informed by the Finance Minister (P Chidambaram), with whom we are engaged in the dialogue, or the Prime Minister (Manmohan Singh) about scrapping of the proposed agreement," Steinmetz said in New Delhi in an interview parts of which were issued two days back.

"Why should it become a victim of the Mittal deal? It should not be as it is as beneficial for India as it is for us," he said.

He went on to add that if Mittal succeeded in taking over Arcelor and established his headquarters in Luxembourg as he has announced, he might require the treaty more.

Steinmetz was responding to a question about reports that the Indian government would not sign the DTAA with Luxembourg as it was opposing bid by NRI business tycoon LN Mittal to take over Luxembourg-based steel major Arcelor.

The threat had reportedly been issued by the Commerce Ministry.