Services as an Eligible Avenue of Offset Discharge in Defence

MoD has reinstated Services as an Eligible Avenue of Offset Discharge in Defence Offset Guidelines (Appendix D to Defence Procurement Procedure). Following have been reinstated:

Maintenance, Repair and Overhaul.

Upgradation / life extension.

R&D services (from Government recognised R&D facilities).

Engineering, design and Testing as well as software development have been reinstated with a maximum cap of 20 per cent of the total offset obligation with provision of random audit to verify value of offset contracts and additional requirement of CMMi  certification of 4 and above category for the IOPs where discharge is envisaged above 5 per cent of offset obligation.

Quality Assurance and Training would continue to be under abeyance.

These changes will apply to the relevant provision of earlier versions of DPP as well.

The change is applicable with immediate effect for RFPs issued on or after the date of issue of this amendment.