India has signed offset contracts worth $1.56 billion since 2013

NEW DELHI: Ten offset contracts worth $1.56 billion have been signed by the government since 2013, the Lok Sabha was told today.

"The offset discharge is spread till the year 2022. The contractual offset obligations to be fulfilled by the vendors upto December, 2015, is $80.22 million against which offset discharge claims worth $65.99 million have been reported (subject to audit)," Minister of State for Defence Rao Inderjit Singh said in a written reply.

He also said "futuristic offset policy" is at the draft stage at present.

The draft offset guidelines envisage targeted offsets, wherein, the desired outcome will be stated upfront in the RFP and the vendors have full flexibility on process to realize the outcome.

Targeted offsets will include transfer of technology, development of ecosystem in defence manufacturing and creation of infrastructure for skill creation and development, Singh said.

Offsets were introduced in 2005 with an objective of developing a defence industrial base in the country.

Defence offset agreements are arrangements in which the seller of a product or service agrees to buy products or services from its client as an incentive.