One effective way is to create 'Defence Offsets India Fund', and an Agency to manage Defence Offsets in totality. All the offset funds, incoming and outgoing, should be managed by this entity. Once the Funds are held by this Agency, these could be appropriately disbursed as per the Offset Policy.
These funds could be generated back-to-back relating to the pay-outs by the MOD to the Vendor(s) for contracts in vogue, and should conform to the timeline of the Project (s). Needless to mention that offset projects themselves, in most cases, should adhere to the Main Contract time frame, if not completed earlier.
Defence Offsets in India are likely to flow from Russia, Israel, European Union (EU) mainly France, UK, Germany, Italy & Sweden, and USA mostly. We need to ‘harmonize' this. NO 'leakages' please!!
Brigadier(Retired) Sukhwindar Singh