Defence and Aerospace Offset Policy and Practice: Offsets Contracts of Over Rs 7,500 Crore Signed in Defence Deals

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, July 17, 2009

Offsets Contracts of Over Rs 7,500 Crore Signed in Defence Deals

Government on wednesday said contracts worth more than Rs 7,500 crore have been signed under the offsets clause of the Defence Procurement Procedure (DPP).

"Offsets contracts of more than Rs 7,500 crore have been signed till date. Contracts between foreign suppliers and Indian defence companies are resulting is setting up of manufacturing, design, testing and service centres in the defence industry," Minister of State for Defence M M Pallam Raju said while replying to a query in the Rajya Sabha.

Under the Offsets Clause, foreign suppliers winning Indian defence contracts of over Rs 300 crore are required to invest a minimum of 30 per cent of the deal's worth back into the Indian defence Industry. Replying to another query, Raju said the Heavy Vehicles Factory in Avadi would be overhauling 120 T-72 tanks in the present fiscal.

Brigadier (Retired) Sukhwindar Singh

http://www.svipja.com/

(A Global Solutionfor Offsets)

Credit: http://economictimes.indiatimes.com/articleshow/4781103.cms