The Bilateral Investment Promotion and Protection Agreement (BIPPA) was signed between Nepal and India on 25 October 2011, during the state visit of the then Nepalese Prime Minister Baburam Bhattarai to India. The agreement aimed to promote investment and protect the interests of investors from both countries.

The agreement was signed by the then Nepalese Minister for Foreign Affairs, Narayan Kaji Shrestha, and the then Indian Minister for Commerce and Industry, Anand Sharma. The signing was witnessed by the Prime Ministers of both countries, Baburam Bhattarai and Manmohan Singh.

The BIPPA agreement was considered a significant step towards enhancing bilateral economic relations between Nepal and India. It provided a legal framework for investment protection, which was expected to boost Nepal`s investment climate and attract foreign investors.

Under the agreement, investors from both countries were granted national treatment, which meant that they were entitled to the same protection and benefits as domestic investors in terms of investment, operation, and protection of their investments. The agreement also provided for the settlement of disputes between investors and host governments through arbitration.

However, the BIPPA agreement faced criticism from various quarters in Nepal, particularly from political groups who argued that it compromised Nepal`s sovereignty. They argued that the agreement favored Indian investors and undermined Nepal`s ability to regulate foreign investment in the country.

Despite the criticism, the BIPPA agreement remained in force until it was replaced by a new investment treaty between Nepal and India in 2020. The new treaty, called the Nepal-India Bilateral Investment Treaty (BIT), was signed in August 2020 and is expected to provide a more comprehensive framework for investment protection and promotion between the two countries.

In conclusion, the BIPPA agreement was signed by Narayan Kaji Shrestha, the then Nepalese Minister for Foreign Affairs, and Anand Sharma, the then Indian Minister for Commerce and Industry, in 2011. The agreement aimed to promote investment and protect the interests of investors from both countries, but it faced criticism from some Nepalese political groups who argued that it compromised Nepal`s sovereignty. The BIPPA agreement was replaced by a new investment treaty between Nepal and India in 2020, which is expected to provide a more comprehensive framework for investment protection and promotion between the two countries.