India further eases defence offsets norms
April 3rd, 2012 - 1:25 am ICT by IANSNew Delhi, Apr 2 (IANS) India Monday further eased its defence offsets norms, saying the value of technology transfered under a deal could be written off against the obligation to reinvest 30 percent of all contracts over Rs.3 billion ($75 million). The offsets clause is expected to bring in investments of $30 billion over the next decade.
Under the Defence Procurement Procedure that was last amended in 2011, a firm winning a defence contract in India worth over Rs.3 billion will have to mandatorily plough back 30 percent of the deal amount in Indian defence, aerospace and homeland security industries.
This provision is a common practice by several nations which make defence purchases from foreign countries.
“The revised policy recognises TOT (transfer of technology) as eligible for discharge of offset obligations,” the revised provisions of offsets clause approved at the Defence Acquisition Council meeting chaired by Defence Minister A.K. Antony said.
The revised provisions also make a distinction between equity and non-equity route, that is investment in “kind” made by the original equipment manufacturer (OEM) for discharge of offset obligations.
“Investment in kind in terms of TOT must cover all documentation, training and consultancy required for full TOT (civil infrastructure and equipment excluded),” the salient features of
the new defence offset guidelines said.
- India further eases defence offsets norms (Lead) - Apr 03, 2012
- Unlimited penalty for defaulting on defence offsets - Aug 02, 2012
- 'Revised defence offsets policy will encourage Indian SME sector' - May 08, 2012
- 'Huge potential for India-Italy defence industry cooperation' - Nov 01, 2011
- India to open more sectors for defence offsets commitments - Feb 09, 2011
- India to ease defence offsets norms to push industry growth (Lead) - Feb 23, 2012
- Defence sector to gain from $30 billion inflow - Aug 03, 2011
- Nod for $1.9-bn defence procurement proposals (Lead) - Jun 22, 2012
- India clears $2.4 bn plan to buy cargo planes for IAF - Jul 23, 2012
- Arms suppliers cashing on offset clause face challenges - Mar 17, 2012
- India clears biggest deal with US for C-17s at $4.1 bn (Second Lead) - Jun 06, 2011
- India opens combat plane tender bids; cost to go up - Nov 04, 2011
- India set for last lap in $10.4-bn combat plane tender - Nov 03, 2011
- New defence production policy to promote domestic industry - Jan 11, 2011
- Nod for $4.5-bn military acquisitions (Second Lead) - Jun 22, 2012
Tags: antony, civil infrastructure, consultancy, defence acquisition, defence aerospace, defence contract, defence minister, defence procurement, distinction, foreign countries, indian defence, New Delhi, norms, offsets, original equipment manufacturer, plough, policy recognises, procurement procedure, salient features, security industries