We are to get almost 10b USD in Defence Offsets in next 5 years. There are large issues related to defence offsets not yet resolved. And the important of them all is ‘Defence Offset Banking’.
In the absence of a ‘National Offset Policy’, it is presumed that the Policy articulated by MOD, and its Working Hub, Defence Offset Facilitation Agency (DOFA) discussed till date remains in vogue.
A new DPP 2008 is expected shortly. Hopefully all inclusive!!
There appears to be ‘high profile’ lobbying wrt ‘Defence Offset Policy’. This should be seen through. We feel that our national interests should not get ‘choked’ in the process and we retain liberty to utilise the funds properly; field the Equipment/Systems/Sub-Systems locally manufactured using the offset funds for the Armed Forces as the need be; and also export unconditionally products & services coming from co-design, co-production, TTs, JVs, etc.
I wish to bring focus on ‘Banking of Defence Offsets’ in this Post.
I feel that we should permit banking of defence offsets. This provides more time and opportunities for the Vendor(s) to select suitable partner(s). This will speed-up development of Indian Defence Industry, especially Defence MSMEs. This also brings addl commitment from the Vendor(s). Once ‘banked’, the Vendor(s) should be ‘free’ to expend these offsets as per the Policy in vogue. Utilisation of ‘banked offsets’ should follow the timeline of the Main Contract, or shorter than that. These ‘offset funds’, should be utilized and monitored appropriately. These could be invested in any defence projects if only Direct Offsets are permitted. Inclusive Growth! Defence MSMEs participation!! Transparency Issues!!!
We need Indian definition of ‘Defence Offset Banking’; of course drawing experience from Others.
Brigadier (Retired) Sukhwindar Singh
http://www.defenceoffsetsindia.com/
http://www.indiandefenceindustry.com/
In the absence of a ‘National Offset Policy’, it is presumed that the Policy articulated by MOD, and its Working Hub, Defence Offset Facilitation Agency (DOFA) discussed till date remains in vogue.
A new DPP 2008 is expected shortly. Hopefully all inclusive!!
There appears to be ‘high profile’ lobbying wrt ‘Defence Offset Policy’. This should be seen through. We feel that our national interests should not get ‘choked’ in the process and we retain liberty to utilise the funds properly; field the Equipment/Systems/Sub-Systems locally manufactured using the offset funds for the Armed Forces as the need be; and also export unconditionally products & services coming from co-design, co-production, TTs, JVs, etc.
I wish to bring focus on ‘Banking of Defence Offsets’ in this Post.
I feel that we should permit banking of defence offsets. This provides more time and opportunities for the Vendor(s) to select suitable partner(s). This will speed-up development of Indian Defence Industry, especially Defence MSMEs. This also brings addl commitment from the Vendor(s). Once ‘banked’, the Vendor(s) should be ‘free’ to expend these offsets as per the Policy in vogue. Utilisation of ‘banked offsets’ should follow the timeline of the Main Contract, or shorter than that. These ‘offset funds’, should be utilized and monitored appropriately. These could be invested in any defence projects if only Direct Offsets are permitted. Inclusive Growth! Defence MSMEs participation!! Transparency Issues!!!
We need Indian definition of ‘Defence Offset Banking’; of course drawing experience from Others.
Brigadier (Retired) Sukhwindar Singh
http://www.defenceoffsetsindia.com/
http://www.indiandefenceindustry.com/
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