India will come up with new set of guidelines that will remove sales commissions to arms agents later this month.
Defense Minister Manohar Parrikar speaking at a public interaction event in Panaji, Goa on Sunday said, “Giving percentage is very risky in India. Money can be paid to various people through this percentage, so we are permitting agents, but not by way of percentage or success fee or failure penalty. A fixed reasonable amount has to be paid to the agency and the defense manufacturing companies can still keep an agency for following up of their work.”
Parrikar also said that guidelines for foreign defence manufacturing companies to enlist arms agents will be issued by the third or fourth week of October.
"Amended new guidelines will start coming from the third or fourth week of this month, they are under final drafting. I feel that agents can be there as a supplementary supporting technically or administratively to the companies, because foreign companies may not be able to keep an office for every supply they make," the defence minister said.