: '' || Centre drops local production clause in defense imports
The Union defence ministry has done away with the offset clause in inter-governmental agreements (IGAs) in the revised Defence Acquisition Procedure (DAP), 2020, which was made public on Monday.
The move comes days after the Comptroller and Auditor General (CAG) of India said in a report that French defence firms Dassault Aviation and MBDA have till date not confirmed" the transfer of technology to the Defence Research and Development Organisation under the 59,000 crore deal for 36 Rafale multi-role fighter jets.
We removed some of the offset requirements as they are not working. From now on, there will be no offset clause in government-to-government, single vendor and IGAs," said the director general, acquisition, of the defence ministry, Apurva Chandra.
Under the offset clause, foreign firms were required to invest part of their deal value (30-50%) in India to boost domestic defence manufacturing. No offset has led to a transfer of technology, he said.
https://www.livemint.com/news/india/centre-drops-offset-clause-in-govt-to-govt-arms-deals-11601343111624.html
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: '' || Centre drops local production clause in defense imports The Union defence ministry has done away with the offset clause in inter-governmental agreements (IGAs) in the revised Defence Acquisition Procedure (DAP), 2020, which was made public on Monday. The move comes days after the Comptroller and Auditor General (CAG) of India said in a report that French defence firms Dassault Aviation and MBDA have till date not confirmed" the transfer of technology to the Defence Research and Development Organisation under the 59,000 crore deal for 36 Rafale multi-role fighter jets. We removed some of the offset requirements as they are not working. From now on, there will be no offset clause in government-to-government, single vendor and IGAs," said the director general, acquisition, of the defence ministry, Apurva Chandra. Under the offset clause, foreign firms were required to invest part of their deal value (30-50%) in India to boost domestic defence manufacturing. No offset has led to a transfer of technology, he said. https://www.livemint.com/news/india/centre-drops-offset-clause-in-govt-to-govt-arms-deals-11601343111624.html