21 Defence Offset Contracts signed by MOD in last 3 years : Minister

Speed Post News Network

New Delhi : Twentyone defence offset contracts with cumulative value of 5.67 Billion US Dollars approximately have been signed by Ministry of Defence (MOD) in last three years.

The MOD has assigned a study through Institute for Defence Studies and Analysis (IDSA) to ascertain the impact of offsets on Indian Defence Industrial Base.  The interim report has been received.

Defence industry sector was first opened up in May 2001 for 100% manufacturing by Indian Private sector including FDI up to admissible cap both subject to licensing.  Department of Industrial Policy & Promotion (DIPP) vide press note 5 (21016) notified revised FDI policy under which FDI is allowed under automatic route up to 49% and beyond 49% through Government route whenever it is likely to result in access to modern technology or for other reasons to be recorded.

So far, 41 FDI proposals / Joint Ventures have been approved in defence sector for manufacture of various defence equipment, both in public and private sector. Further, the Government has so far issued 430 licenses till December, 2018, for manufacturing of various licensable defence items.

FDI of Rs 1.16 crore has been received under the 3 National Industrial Classification (NIC) Codes of Defence sector as informed by DIPP.  In addition, 6 companies, for which FDI approval had been accorded, received Rs 237.44 crores in Defence and aerospace sector since April 2014. This information was given by Minister of State for Defence Dr Subhash Bhamre in a written reply to Ritabrata Banerjee in Rajya Sabha on February 11, 2019, according to a PIB release.