Chandigarh, Mar 12 (UNI) Offsets would be applicable in all defence acquisition cases with an indicative cost of Rs 300 crore, but the Indian Defence Industry was capable of absorbing the full value of the offsets, which would roughly amount to Rs 5,000 crore per year.
These observations were made by Dr Kiran Chadha, Joint Secretary (Exports) Department of Defence Production, Ministry of Defence and Chairperson Defence Offset Facilitation Agency (DOFA) while speaking during the session on Offset Policy organised by the CII Chandigarh at its regional headquarter here today.
''The foreign vendor would find the policy simple to implement in practice as would the MoD find it easy to monitor compliance,'' she said Dr Chadha said, ''The offsets would help the private sector in two ways -- the first is to provide bargaining power for domestic government/firms in international agreements and second, technology transfer from private suppliers to buyers. Further offset benefits accured are ploughed back to boost manufacturing capabilities, gaining access to technology, increasing exports, besides generating employment, she further added.
While deliberating on the subject, Dr Chadha said, the Defence Production Industry in India has traversed a long path from being reserved entirely for the public sector to moving towards greater participation from the private sector.
To ensure indigenous research, design, development and production of capabilities sought by the Armed Forces in presecribed time frame while optimally utilising the potential of Indian Industry, the guidelines incorporated in Defence Procurement Procedure for evaluation of commercial offers help in neutralising the impact of taxes and taxes payable by Indian Industry and make it a level playing field, she said.
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These observations were made by Dr Kiran Chadha, Joint Secretary (Exports) Department of Defence Production, Ministry of Defence and Chairperson Defence Offset Facilitation Agency (DOFA) while speaking during the session on Offset Policy organised by the CII Chandigarh at its regional headquarter here today.
''The foreign vendor would find the policy simple to implement in practice as would the MoD find it easy to monitor compliance,'' she said Dr Chadha said, ''The offsets would help the private sector in two ways -- the first is to provide bargaining power for domestic government/firms in international agreements and second, technology transfer from private suppliers to buyers. Further offset benefits accured are ploughed back to boost manufacturing capabilities, gaining access to technology, increasing exports, besides generating employment, she further added.
While deliberating on the subject, Dr Chadha said, the Defence Production Industry in India has traversed a long path from being reserved entirely for the public sector to moving towards greater participation from the private sector.
To ensure indigenous research, design, development and production of capabilities sought by the Armed Forces in presecribed time frame while optimally utilising the potential of Indian Industry, the guidelines incorporated in Defence Procurement Procedure for evaluation of commercial offers help in neutralising the impact of taxes and taxes payable by Indian Industry and make it a level playing field, she said.
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