Defence and Aerospace Offset Policy and Practice: L & T , and Astra First Two Beneficiaries of the Offset Policy

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.

----------------------------------------------------------------------------------------------------------

Friday, January 11, 2008

L & T , and Astra First Two Beneficiaries of the Offset Policy

India’s new defence offset policy has started rolling with major private sector firms Larsen and Toubro and Hyderabad-based Astra defence software becoming the first beneficiaries. However, reports suggest that these deals are yet to be executed.

The two firms were chosen by Israeli defence major Elta as offset partners after it was awarded a Rs 833.4-crore deal to supply medium range radars to the IAF.

“This is the first major defence procurement in which the government has enforced the offset clause,” Secretary, Defence Production reporters here today. Without spelling out the details of the deal, he Secretary said Elta had agreed to plow back Rs 250 crore as offsets into these two companies.

India’s new defence procurement policy incorporates a 30 per cent offset clause for all deals worth over Rs 300 crore.

Brigadier (Retired) Sukhwindar Singh

http://www.svipja.com/ http://www.defenceoffsetsindia.com/

http://www.indiandefenceindustry.com/