IANS
NEW DELHI, DECEMBER 23
The defence ministry on Wednesday said the provision of allowing ‘services’ as a means to discharge the offset obligations has been reinstated, after being in abeyance since May 2013.
The Defence Procurement Procedure (DPP) has a provision for foreign Original Equipment Manufacturers (OEMs) to discharge their offset obligations through ‘services’, including maintenance and repair, software, skill development and technology transfer.
However, this provision was kept in abeyance with effect from May 23, 2013 “due to absence of any regulatory oversight mechanism for services”, an official statement said.
It said there was a persistent demand from the industry, both domestic and foreign, for allowing ‘services’ as a valid avenue for discharge of offset obligations.
“Based on several interactions and inputs, received from industries, most of the ‘Services’ which were in abeyance have been reinstated with checks and balances,” the statement added.
The changes in the offset policy will also bring Indian vendors at par with foreign vendors when they participate in the ‘Buy Global’ category.
“Indian vendors participating in ‘Buy Global’ cases were at a disadvantageous position in terms of fulfilling offset obligations. In order to promote ‘Make in India’, a level playing field has been provided and an Indian vendor has been brought at par with the foreign OEM in terms of fulfilling offset obligations,” the statement said.
