Indian Defense Offsets Pass $4 Billion Mark

The Defence Procurement Procedure (DPP) is refined and updated periodically. DPP was last reviewed in 2010 on the basis of experience gained during its implementation and feedback received from various stakeholders including Armed forces, Indian defence industry, Industry Associations and Original Equipment Manufacturers. DPP-2011 was promulgated with effect from 1st January, 2011. The amendments aim at expediting decision making, simplification of contractual and financial provisions and establishinga level playing field for the public sector and private sector. 17 Offset contracts have been signed so far with a value of about US $ 4.279 billion. Details are given in the table. The offset contracts are at various stages of execution. The offset policy was introduced in 2005. It is a relatively new policy and in the process of evolution. The first offset contract was signed in 2007. Implementation of the Offset contract isco-terminuswith the execution of the main contract as per present guidelines. Indian Industry both public and private sector are benefitting through investments and purchases by foreign vendors who have signed Offset contracts. The positive impact of Offsets on development of the indigenous Defence industrial base will be visible in the coming years.