India to release new offset guidelines

Neelam Mathews

July 27, 2011
Time- 1:43pm IST

The learning never ends. India is to release another offset policy that is expected to be more consolidated and liberal, Aerospace Diary learns.

The policy is expected to be released in a month or so. While the DPP 2006 will be valid for procurement procedures for the MMRCA, the offset benefits outlined in the new policy will be applicable to the MMRCA project if it is released before the contract is awarded.

The new policy is required as structural changes have to be brought in.Transfer of Technology too, is a major issue. While the government is interested in giving credits, it needs to define the technology it will need. The policy expects to bring out a list of technologies that will qualify for offset credoit. For this, a set of multipliers eligible, too will need to be defined.


Valuation in FDI for non-cash equity, too is being defined.


In the aviation arena, there remain some irksome issues including treatment of services.



The military has meanwhile, called for an offset organisation  that does not "self-audit."

"It is time to bring in the private industry into the fold. DPUs and private sector have to learn to stop getting at each other's throats.....With major procurement being done now in India, the party is on only for the next five years," says an official candidly to Aerospace Diary.