Defence and Aerospace Offset Policy and Practice: ARMED FORCES TO BE STAKEHOLDERS IN THE DRDO PROJECTS

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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Tuesday, August 19, 2008

ARMED FORCES TO BE STAKEHOLDERS IN THE DRDO PROJECTS

It is a 'strategic thought and a welcome decision' to involve the Indian Armed Forces as stakeholders in Defence Projects to be developed by the DRDO. This will check 'free wheeling' by certain agencies and put an onus on all the Defence Establishments to make India self-reliant and self-sufficient; a target that has been eluding Us for variety of reasons. Also the main Users, the Indian Armed Forces, would feel obliged to 'accept' home-developed systems. It is 'Users-Industry-DRDO/Govt.' that need to work in total sync to achieve something substantial by the Indian Defence Industry, and make it competitive globally. My congrats to DAC !! The news reads like this:

'The DAC has agreed in principle that such(DRDO) projects should be funded in a 70-20-10 per cent ratio: 70 per cent by the DRDO, 20 per cent by the industry partner that will manufacture the developed product; and 10 per cent by whichever of the three services the product is being developed for”.

We need to increasing involve 'operational armed forces personnel' in the developmental projects rather than greatly depending on military staff loaned to DRDO, DGQA and Other set-ups that support the Dept. of Defence Production(DDP)/MOD which at best gets outdated after 1 year of tenure in DDP Agencies. You need to mesh-in current operational thinking in the Armed Forces in the developmental projects--'file pushing' and 'I am an indep agency/boss' attitude would not help. Could achieve it through the DAC!

We should accept no argument contrary to this decision; bottom line is that it is in our national interest. Defence Offsets could be suitably utilised in such projects.

Brigadier (Retired) Sukhwindar Singh

http://www.defenceoffsetsindia.com/

http://www.indiandefenceindustry.com/