Aviotech Analysis on New Offsets Policy
Offsets Demystified- Credit- Aviotech (Posted by Neelam Mathews) An excellent and thorough study done by Aviotech (+91-124-4982850 ) Summary 1. The Acquisition Wing in the Department of Defence will be responsible for technical and commercial evaluation of offset proposals as well as conclusion of offset contracts. Newly formed Defence Offsets Management Wing (DOMW), under the Department of Defence Production, will be responsible for formulation of Defence Offset Guidelines and all matters relating to post contract management. 2. 30% of estimated cost of the acquisition (equal to or more than USD 55 Mn) in ’Buy (Global)’ category acquisitions and 30% of the foreign exchange component in ‘Buy and Make with ToT’ category acquisitions will be the required value of the offset obligations. 3. The new routes for liquidation of Offset obligations are : a...