The MoD is planning to expand DOFA . A high-level committee has worked out what DOFA will need to include, and the announcement will take place shortly.“There is unanimity in the MoD that neither DOFA, nor the Director General (Acquisitions) can handle such a large volume of independent work”, said Secretary, Defence Production.
The expanded version of DOFA, according to the Secretary, Defence Production, will perform the following roles:
• Evaluating offsets proposals submitted by foreign vendors, during the bidding process.
• Keeping an account of the fulfilment of the offsets contracts, including the value of defence products manufactured, and exported, and the offsets liability carried forward each year.
• Once offsets banking is permitted, DOFA will perform the role of the bank, keeping a track of the offsets banked, encashed, and carried forward.
• When grey areas exist in the policy, the expanded DOFA will interpret and provide policy clarifications.
• When certain cases fall outside existing policy, decisions on those cases will be made by the expanded DOFA.
“This organisation will play a very important role in advising the Govt. what is in the best interests of the country. But foreign vendors and private companies --- they have no role to play in this body. This is a purely MoD housekeeping function”, said the Secretary.
The expanded DOFA will include a technology evaluation cell, consisting of Defence R&D Organisation (DRDO) personnel, a legal cell that is qualified in law relating to commerce and foreign trade, and a greatly expanded accounting capability in order to keep continuous track of individual offsets liabilities that are discharged over several years.
It is still unclear whether the expanded DOFA will continue to form a part of the Department of Defence Production in the MoD, or whether it will evolve into a separate regulatory-cum-advisory body, in which case a legislative framework will have to be enacted.
Brigadier (Retired) Sukhwindar Singh
http://www.svipja.com/ http://www.defenceoffsetsindia.com/
http://www.indiandefenceindustry.com/
Credit: Broadsword, Ajai Shukla.
The expanded version of DOFA, according to the Secretary, Defence Production, will perform the following roles:
• Evaluating offsets proposals submitted by foreign vendors, during the bidding process.
• Keeping an account of the fulfilment of the offsets contracts, including the value of defence products manufactured, and exported, and the offsets liability carried forward each year.
• Once offsets banking is permitted, DOFA will perform the role of the bank, keeping a track of the offsets banked, encashed, and carried forward.
• When grey areas exist in the policy, the expanded DOFA will interpret and provide policy clarifications.
• When certain cases fall outside existing policy, decisions on those cases will be made by the expanded DOFA.
“This organisation will play a very important role in advising the Govt. what is in the best interests of the country. But foreign vendors and private companies --- they have no role to play in this body. This is a purely MoD housekeeping function”, said the Secretary.
The expanded DOFA will include a technology evaluation cell, consisting of Defence R&D Organisation (DRDO) personnel, a legal cell that is qualified in law relating to commerce and foreign trade, and a greatly expanded accounting capability in order to keep continuous track of individual offsets liabilities that are discharged over several years.
It is still unclear whether the expanded DOFA will continue to form a part of the Department of Defence Production in the MoD, or whether it will evolve into a separate regulatory-cum-advisory body, in which case a legislative framework will have to be enacted.
Brigadier (Retired) Sukhwindar Singh
http://www.svipja.com/ http://www.defenceoffsetsindia.com/
http://www.indiandefenceindustry.com/
Credit: Broadsword, Ajai Shukla.
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