Indian Audit Body Objects To Defense Offset Transactions
AIN DEFENSE PERSPECTIVE » DECEMBER 7, 2012 by NEELAM MATHEWS Aerospace offsets are under examination in India. Boeing is supposed to offset $600 million of the cost of supplying P-8I maritime patrol aircraft. (Photo: Boeing) December 7, 2012, 9:22 AM India’s audit body for government projects, the Comptroller and Auditor General ( CAG ), has censured the Ministry of Defense for violations in the offset clause of five projects for which waivers were given. As a result, the CAG says, more than $376 million in foreign direct investment for the Indian aerospace industry has been lost. The projects were all started before India introduced its latest offset policy earlier this year. CAG named Boeing, Lockheed Martin, Rosoboronexport and MiG in its report, which noted the lack of any value addition by the nominated Indian service provider. The MoD did not respond to many of its queries, said t...