India Signed Defence Offsets Worth $4.3bn

The defence acqui­si­tions of India are also prov­ing to fruit­ful for the Indi­an defence indus­try which is like­ly to gain by defence off­sets signed so far.

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Here you can find more infor­ma­tion about the Indi­an Defense Sec­tor

The off­set con­tracts val­ue at a whop­ping $ 4.279 bil­lion. Any for­eign ven­dors enter­ing a defence con­tract valu­ing more than Rs. 300 crores is man­dat­ed to invest 30 per­cent of the deal in Indi­an defence indus­try and it is called off­sets. Sur­pris­ing­ly not a sin­gle defence off­set for the Indi­an Army.

Here is the reply of Defence Min­istry in the Par­lia­ment

The Defence Pro­cure­ment Pro­ce­dure (DPP) is refined and updat­ed peri­od­i­cal­ly. DPP was last reviewed in 2010 on the basis of expe­ri­ence gained dur­ing its imple­men­ta­tion and feed­back received from var­i­ous stake­hold­ers includ­ing Armed forces, Indi­an defence indus­try, Indus­try Asso­ci­a­tions and Orig­i­nal Equip­ment Man­u­fac­tur­ers. DPP-2011 was pro­mul­gat­ed with effect from 1st Jan­u­ary, 2011. The amend­ments aim at expe­dit­ing deci­sion mak­ing, sim­pli­fi­ca­tion of con­trac­tu­al and finan­cial pro­vi­sions and estab­lish­ing a lev­el play­ing field for the pub­lic sec­tor and pri­vate sec­tor.

17 Off­set con­tracts have been signed so far with a val­ue of about US $ 4.279 bil­lion. Details are giv­en in table below. The off­set con­tracts are at var­i­ous stages of exe­cu­tion.

The off­set pol­i­cy was intro­duced in 2005. It is a rel­a­tive­ly new pol­i­cy and in the process of evo­lu­tion. The first off­set con­tract was signed in 2007. Imple­men­ta­tion of the Off­set con­tract is co-ter­mi­nus with the exe­cu­tion of the main con­tract as per present guide­lines. Indi­an Indus­try both pub­lic and pri­vate sec­tor are ben­e­fit­ting through invest­ments and pur­chas­es by for­eign ven­dors who have signed Off­set con­tracts. The pos­i­tive impact of Off­sets on devel­op­ment of the indige­nous Defence indus­tri­al base will be vis­i­ble in the com­ing years.

Source:
www.DefenceNews.in

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