Svipja's Offset Practice

Our Offset Practice helps high-tech Defence and Aerospace Industry in offset projects. www.svipja.com/ refers.

We also empanel Offset Consultants with Industry knowledge in A & D. You could fill Your 'Resume' on http://www.svipja.com/careers.php , or 'Join as a Consultant' on www.indiandefenceindustry.com/


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.


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.


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.


Sunday, September 21, 2008

FDI in the Defence Sector

Defence Industrial Sector needs heavy investments coupled with 'innovative' manufacturing to match international players. Also 'dynamics' of the Defence Sector further retards participation by the private players in ' defence manufacturing', for fear of not 'picking' of the manufactured products / services by the Clients -- all this adds to Industry Success Probability Factor.

Private Sector has a definite role in the Defence Sector. It could bring the Industry to global standards provided level playing field is ensured. DPSUs, OFB, DRDO and Other Agencies have a distinct edge in the matter for various reasons, and especially the fact that they have been on the 'scene' for long.

It is these reasons that has kept the Private Defence Participation limited since the opening of the Defence Sector for Private participation in 2001. What are the chances of my selling to the Defence even if my product / service is of global or high standard, homegrown, and price-competitive ? Are there any factors beyond pure competition at play ?

Access and Openness of the Govt. Executives to the Private Sector still remains elusive. Can we set-up an Organisation open to the Industry located somewhere in the private domain, like Pragati Maidan, CP and the Like nation-wide within security constraints ; after all everything is not SECRET. That would definitely usher a new era in the Sector.

Use e-Governance extensively in non-strategic areas. We do so much of 'black-collared' work for the world in IT, let Us do it for ourselves also to bring efficiency, transparency, and best-of-the-breed-practices for the Indian Defence.

Defence Minister's recent thoughts on permitting 49% FDI in the Defence Sector on case-to-case basis in case the Industry can convince the Govt is welcome ! But let it also reach the Private Sector and be not 'cornered' by the Govt Agencies which are already funded heavily by the Govt. And do not forget the MSMEs which are the vehicles for innovative, high-tech, and knowledge economy. 49% FDI would help in Offsets greatly.

Presently, 26% FDI is permitted in the Defence Sector.

Brigadier (Retired) Sukhwindar Singh