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| M-777 Howitzer (File Photo) |
By Vivek Raghuvanshi
NEW DELHI — A policy move being considered by the Indian Ministry of Defence could help overseas defense companies meet their offset obligations and close defense contracts being held up by uncompleted offset documents, an MoD source said.
An internal MoD committee has recommend that defense contracts not be delayed merely on grounds of incomplete offset documents if the company is working to fulfill the offset obligations during the execution of the defense project.
The recommendation is likely to be accepted and a policy change to this effect could be announced within a month, the MoD source said.
Overseas defense companies are required to discharge offsets of at least 30 percent of the total value of the contract. These obligations can be fulfilled either through transfer of technology, direct purchase of components and systems from the defense industry, or by creating specific manufacturing facilities and investing in skill development and training.
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