The defence acquisitions of India are also proving to fruitful for the Indian defence industry which is likely to gain by defence offsets signed so far. The offset contracts value at a whopping $ 4.279 billion. Any foreign vendors entering a defence contract valuing more than Rs. 300 crores is mandated to invest 30 percent of the deal in Indian defence industry and it is called offsets. Surprisingly not a single defence offset for the Indian Army.
Here is the reply of Defence Ministry in the Parliament
The Defence 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 defence 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.
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)
Year
|
2006-07
|
2007-08
|
2008-09
|
2009-10
|
2010-11
|
||||||
Amount spent
|
21612.24
|
17993.08
|
20347.74
|
25920.48
|
31444.55
|
||||||
The accounting system does not separately capture data
regarding procurement from Indian private sector companies.
LIST OF CONTRACTS WITH 30% OFFSET CLAUSE
S. No.
|
Name of Scheme
|
Offset amount
(in US dollars)
|
Date of signing of contract
|
||||
AIR FORCE
|
|||||||
1
|
MPR
|
5,406,000
|
16.10.2007
|
||||
2
|
Mig-29 Upgrade
|
308,271,669
|
07.03.2008
|
||||
3.
|
Mi-17 V-5 Helicopters (MLH)
|
405,070,000
|
15.12.2008
|
||||
4.
|
Medium Altitude EO/IR recce System for Jaguar Aircraft
|
21,086,031
|
06.02.2009
|
||||
5.
|
P-IV (HAROP) System
|
44,310,000
|
13.02.2009
|
||||
6.
|
C-130 J-30 ac FMS Case
|
219,000,000
|
06.03.2009
|
||||
7.
|
Low Level Transportable Radar (LLTR)
|
34,750,000
|
29.07.2009
|
||||
8.
|
AW 101 WIP Helicopter
|
224,140,000 (Euro166,878,608)
|
08.02.2010
|
||||
9.
|
Sensor Fuzed Weapon
|
102,540,000
|
15.11.2010
|
||||
10.
|
C-17 Aircraft (VHETAC - FMS Case)
|
1,091,700,000
|
14.06.2011
|
||||
11.
|
Mirage-2000 Upgrade
|
592,810,000
(Euro 441,367,882)
|
29.07.2011
|
||||
12.
|
MICA IR and RF Msl
|
386,400,000
(Euro 287,690,000)
|
31.01.2012
|
||||
Total = US $ 3,435,483,700
|
|||||||
NAVY
|
|||||||
1.
|
Fleet Tanker
|
55,279,455
(Euro 41,563,500)
|
23.04.2008
|
||||
2.
|
Long Range Maritime Reconnaissance Anti Submarine Warfare
Aircraft
|
641,260,500
|
01.01.2009
|
||||
3.
|
Fleet Tanker under Option Clause
|
55,279,455
(Euro 41,563,500)
|
31.03.2009
|
||||
4.
|
Air Route Surveillance Radar (ARSR)
|
11,164,800
|
06.11.2009
|
||||
5.
|
Unmanned Aerial Vehicles (UAV)
|
80,774,390
|
04.03.2010
|
||||
Total = US $ 843,758,600
|
|||||||
Grand Total = US $ 4,279,242,300
|
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