DPP 2008 & DPM 2009

Here is Defence Procurement Procedure (DPP 2008) including Offsets Policy, and Defence Procurement Manual 2009 ! You could read these on the MOD/India website at link :

http://mod.nic.in/dpm/welcome.html

Defence Offsets

Rationalisation of licensing condition, introduction of offset banking listing of defence products and exemption from offset of acquisitions under fast track procedures are some of the salient features of the New Defence Offset Policy as envisaged in the DPP 2008 . 

Under the existing offset guidelines, a private industry was necessarily required to have an industrial license for being entitled to participate in the offset programmes. In the revised guidelines a private industry will be required to have an industrial license only if so stipulated under the guidelines/licensing requirements for the defence industry issued by the Department of Industrial Policy and Promotion. 

Offset policy has been revised to include offset credit banking enabling foreign vendors to create offset programmes in anticipation of future obligations. This will also enable foreign industry and their Indian offset partner to have long term arrangements to discharge offsets and will thus enhance the capacity of the Indian industry to absorb offsets. Under the banking guidelines, a vendor will be able to discharge the banked offset credits for the RFPs which have been issued within two to two and half years depending upon the date of issue of RFP. 

The offset obligations are to be fulfilled coterminous within the period of main contract. 

If a vendor is able to create more offsets than his obligations under a particular contract, the surplus offset credits can be banked and would remain valid for the period of two financial years after conclusion of the said contract. 

A list of defence products has been added to facilitate the foreign vendors in implementing their offset obligations. 

Acquisitions under the Fast Track Procedure have to be implemented in a short time to meet imminent operational requirements. These have been exempted from the requirement of offset. 

Offsets are compensatory, reciprocal trade agreements for industrial goods and services applied as a condition of military-related export, sales and services.  

Brigadier (Retired) Sukhwindar Singh
www.svipja.com
www.FreeMarketsDefence.com

Credit:  MOD, India, Website, and the Govt. Press Release.