Union Minister Rajiv Pratap Rudy pitches for use of defence offsets for skilling infrastructure

NEW DELHI: Union Minister Rajiv Pratap Rudy today approached Defence Minister Manohar Parrikar and pitched for usage of defence offsets for skilling to enhance India's defence manufacturing capabilities.

In a letter to Defence Minister, Rudy, who is the Minister of State (Independent Charge) for Skill Development and Entrepreneurship, made a strong plea that defence offsets, if allowed to be used for skill development purposes, will help enhance country's defence manufacturing capabilities.

Rudy also made a strong pitch for using defence offsets for creation of infrastructure and facilities for skill development in the country with a particular focus on defence and strategic manufacturing skills.

Use of defence offsets for skilling is also one of the key elements of the MoU on strategic partnership on skill development that was signed between the Ministry of Defence and Ministry of Skill Development and Entrepreneurship earlier this year.

Thereafter, a proposal for supporting skill training of 50,000 persons and 700 instructors required by the Aerospace Manufacturing Sector at an estimated value of USD 150 million has been under consideration of the government.

The current defence offset guidelines do not include skill development services under its purview. However, the new Defence offset guidelines that are under consideration, specifically include creation of infrastructure for skill development to discharge Defence offsets obligations.

Defence offset provisions apply in cases, where Defence Capital Acquisitions of value of Rs 300 crore or more are done.

As per the proposed new guidelines under discussion, an outcome-based approach will be followed for offset execution wherein a vendor will have the flexibility on process, but has to strictly ensure the realisation of the expected outcomes.

These outcomes would now include creation of infrastructure for skill development including training of trainers, provision of teaching aids, preparation of curriculum material etc.

Under the proposed guidelines, Defence offsets for skill development would be overseen by a Committee under the Skills Ministry. The panel will identify skill sets and related infrastructure required to be acquired through offset route.

Identification of skill sets, creation and subsequent certification of skill sets may or may not be related directly to the platform being procured even though the skill sets would be required to relate defence infrastructure and aerospace only.