May 14, 2012
Posted by - Neelam Mathews
AK Antony, Defense Minister said in Parliament-
The Defense 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 defense 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 establishing a 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 table below. 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 is co-terminus with 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.
The amount spent on Capital Acquisition from indigenous sources during the last five years is as follows:-
(Rupees in crores)
The accounting system does not separately capture data regarding procurement from Indian private sector companies.
LIST OF CONTRACTS WITH 30% OFFSET CLAUSE
Name of Scheme
(in US dollars)
Date of signing of contract
Mi-17 V-5 Helicopters (MLH)
Medium Altitude EO/IR recce System for Jaguar Aircraft
P-IV (HAROP) System
C-130 J-30 ac FMS Case
Low Level Transportable Radar (LLTR)
AW 101 WIP Helicopter
Sensor Fuzed Weapon
C-17 Aircraft (VHETAC - FMS Case)
MICA IR and RF Msl
Long Range Maritime Reconnaissance Anti Submarine Warfare Aircraft
Fleet Tanker under Option Clause
Air Route Surveillance Radar (ARSR)
Unmanned Aerial Vehicles (UAV)