A wholly-owned subsidiary of a foreign company, though India registered, will not make itself eligible for offsets as per the current policy. It would need to modify its share holding pattern and bring it to 74% Indian Holding for it to be eligible for offsets, unless special dispensation to it is permitted by the Govt of India.
However, Defence & Aerospace majors and others could purchase products/services from such a subsidiary. This may be cleared as an offset transaction and earn offset credits, DAC/DOFA/MOD permitting. The wholly-owned India Registered subsidiaries of foreign companies could thus form part of the supply chains of the A & D Majors, but without any offsets advantages, in cash or kind, coming to them.
Svipja Technologies
However, Defence & Aerospace majors and others could purchase products/services from such a subsidiary. This may be cleared as an offset transaction and earn offset credits, DAC/DOFA/MOD permitting. The wholly-owned India Registered subsidiaries of foreign companies could thus form part of the supply chains of the A & D Majors, but without any offsets advantages, in cash or kind, coming to them.
Svipja Technologies
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