Government rules out indirect offsets in defence deals
The government on Friday ruled out allowing multinational armament companies to go in for indirect offsets in defence deals worth over Rs 300 crore.
By PTI |
NEW DELHI: The government on Friday ruled out allowing multinational armament companies to go in for indirect offsets in defence deals worth over Rs 300 crore.
Defence Production Secretary K P Singh said it would be mandatory for all prospective foreign weapons suppliers to directly invest 30 per cent of the value of an order in the country's defence sector.
His clarification came at a time when India is on the verge of clearing major armament purchases running into billions of dollars, including deals for hundreds of helicopters, fighter jets, artillery guns and other systems.
"Any company vying for supplying defence weapons to India will have to invest 30 per cent of the order in purchasing tanks, warships, missiles and other defence equipment from Indian public and private sector companies," Singh said.
The foreign companies will not be allowed to invest in non-defence sectors. With this step, the government has made it clear to firms from abroad that they cannot take advantage of offsets in sectors like IT, where India is a market leader.
The government's decision came ahead of a major seminar on defence offsets sponsored by the defence ministry. Major Indian public and private defence enterprises and major foreign players will participate in the event beginning on Tuesday.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
