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Svipja's Offset Practice

Our Offset Practice helps high-tech Defence and Aerospace Industry in offset projects. www.svipja.com/ refers.

We also empanel Offset Consultants with Industry knowledge in A & D. You could fill Your 'Resume' on http://www.svipja.com/careers.php , or 'Join as a Consultant' on www.indiandefenceindustry.com/

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Steps in Our Offset Process

Step 1: Acquaint Yourself first on Offset business. Please visit www.IndianDefenceIndustry.com , its connected Blogs and www.svipja.com in addition to other subject matter elsewhere. Offset Partnership and projects go thru rigorous 'Due Diligence' / 'Gate Reviews' by Vendors / Obligors.

Step 2: Register online on www.IndianDefenceIndustry.com using Internet Explorer to be part of the database of the Defence Industry. We are developing a consortium of MSMEs globally with India focus for them to participate in Aerospace and Defence direct and indirect Offset Projects.

Step 3: Obtain Industrial License, if required.We take Advisory on Products / Services to target, Capacity Creation, JV and Capital tructure incl FDI & Technology Agreements, etc.

Step 4: Become Industrial Sector Partner (ISP) of Svipja / India. We will guide the ISP firms go through qualified vendor registration process for Supply Chains of aerospace & defence firms.

Some of these steps could be attempted concurrently.

Commercials

1. Yearly Membership Fee for Registering on the Site and using e-Marketplace Engine for Buying/Selling, and accessing Info System, is as indicated in Tariffs on the Site. Fee is variable.

2. Separate Fee for Offset Consulting / Industrial Co-operation would apply. Contact svipja@gmail.com for further details.

3. Addl Fee will apply in case of market research, study and other services.

Conditions

1. Svipja provides guidance to the Indian ISP on project suitability and document/plan preparation for the Gate Review Process, and it's Presentation as required.

2. Svipja does not take responsibility for offset fund allotment to ISPs. This is decided by A &D Major Company based on the capability of the ISP to meet the needs of the A & D Major.

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Saturday, January 12, 2008

Flip Side of Offsets : European Union's Perspective

Offsets are widespread in the Defence Sector, despite being banned under the WTO's 'Agreement on Government Procurement' in all other areas of commercial business. Also , there is a growing recognition in Europe that "in principle, offsets are hardly compatible with transparency and fair competition in open markets" ("Defence Procurement in the European Union", Report of an EUISS Task Force, May 2005, Refers).

Offsets as a practice are vulnerable to corruption and abuse. Transparency International UK's Background Note "Offsets" (2005) describes the main trends and practices in the use of Defence Offsets. It illustrates how and why offsets are so open to corruption and outlines recommendations to remedy the current situation. General assessment :

1. Offsets are viewed as ‘largely ineffective over the long term and have minimal lasting impact on economic or military capability’.

2. Offsets are estimated to increase sales price by some 15 - 30%.

3. Direct offsets very rarely work.

4. Current EU Opinion (2005) on Offsets : ‘They are here to stay, and need to be harmonised’.

5. European Defence Association’s Opinion (Jan 2006) on Offsets: The "Study on the effects of offsets on the Development of a European Defence Industry and Market " (2007) financed by the European Defence Agency notes that "there are indications in some cases of lacking transparency and professionalism, which in extreme cases may even offer opportunities for corruption". Further the authors note that "it seems indisputable that opaque and un-professional offset implementation provides scope for corruption potentially leading to another system being chosen that would have occurred in an open and transparent market".

Corruption Risks

a. They are subject to less study than the main contract.

b. Their influence in the evaluation of bidders is often completely unclear.

c. They offer huge scope to reward intermediaries anonymously .

d. They are not settled until long after the contract is signed .

e. They are not well-monitored.

f. ‘Auditing’ and ’Value for Money’ assessments are almost never done.

Transparency International (UK) views Offsets as a significant and uncontrolled corruption risk. For details, pse Click : http://www.defenceagainstcorruption.org/index.php?option=com_content&task=view&id=26&Itemid=102


Brigadier (Retired) Sukhwindar Singh
93501 71232

Credit : Defence Against Corruption - A Project of Transparency International (UK).

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