India’s new Defense Procurement Procedure (DPP) will allow foreign firms to change their Indian offset partner (IOP) anytime subject to approval.
The power will be given to the Secretary, Defense Production to allow foreign firms to change their offset partners.
“IOP could not be changed and we felt that this was the wrong way of doing business as the IOP can even close down or their technology may not be latest at the time of operationalization," a source said Sunday.
Among other changes in the upcoming DPP, ‘services’ will be restored as eligible offsets for military deals.
"Services which were stopped have been included. We have approved four out of the six services," one of the sources said.
These services are maintenance and repair, software, skill development and technology transfer. The sources said these segments will have certain riders and conditions.
The services restoration was kept aside after the VVIP chopper scandal.
Another key change in the policy could be the option to migrate from offset obligations to 'buy and make'. It is not yet clear if this is part of the new policy.
Under this, value of FDI by Original Equipment Manufacturer and eligible products being manufactured in India will be counted against offset obligations.
Offsets were introduced in 2005 with an objective of developing a defence industrial base in the country. However, it has failed to deliver to its full potential. Another reason why the offset policy is being revised is because it has led to delays in critical acquisitions.
In some cases, negotiations and finalisation of offset contracts have taken equal, if not longer, time as for the prime contract itself.
Indias Defense Research Development Organization will get a ‘technology demonstration vessel to track the full flight of future long-range naval missile systems. DRDO has assigned the job to construct the vessel for the purpose to the public sector Cochin Shipyard in the next three years, the Hindu news daily reported Saturday
Indias inter-ministerial committee has cleared 32 proposals for setting up manufacturing units in defense and explosive sectors. Of the 32 proposals cleared 25 of them were from defense manufacturing sector and seven from explosive sector
The Indian Army will deploy new and advanced remote controlled weaponry along the Line of Control once they are tested. “At the moment, they (new and modern weapons) are in the nascent stage… There are various upgradation and whether you call them remotely controlled (guns) or you can say up gradation of various technologies, they are in the nascent stage,” a senior Army commander said Thursday
India has Test-fired an upgraded version of the interceptor missile against an electronically simulated target missile over Bay of Bengal. The anti-ballistic missile or the Advanced Air Defense (AAD) took off from Wheeler Island and destroyed an incoming target missile in the endo-atmosphere, the Hindu news daily reported Sunday
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