Aerospace Diary

By- John Williams Williams Global Advisors 1.      Objectives of the Offset Policy have been clarified.  The objectives are: a.      Development of globally competitive industries b.      Enhancement of India’s R&D and Design capabilities c.      Encouraging the development of synergistic sectors (I’m assuming this could include sectors such as homeland security, but possibly even energy, and communications down the road) 2.      A new nodal agency has been introduced with responsibility for offset discharge management (post-contract) a.      The new Defense Offset Management Wing (DOMW) will have full responsibility for offset contract management b.      A new position (JS – DOMW) has been created for this purpose c.      Pre-contract responsibility still rests with DDP and Acquisition Wing 3. ...

Neelam Mathews April 2, 2012 The much awaited revised offset policy is out. It reinforces its aim is to augment capacity for R&D, foster development of international competitive enterprises and give a boost to synergistic sectors like homeland security and civil aviation. The policy recognizes: TOT as eligible for discharge of offset obligations Technology acquisition by DRDO for a list of specified technologies will be treated as an eligible offset with a multiplier of upto 3. While Tier 1 subvendors can already discharge part of obligations on behalf of the main vendor, the overall responsibility will rest on the vendor. Offsets can now be discharged within a timeframe extending to two years beyond the period of the procurement of the contract Validity of Banking of offsets has been extended from 2 to seven years In the discharge of offsets obligations relating to direct export, FDI, TOT  or investment in ‘kind’ through non equity route, a multiplier of 1.50 ...