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. 

DPP 2013, Defence Offset Policy and Their Revision in 2015

I am NOT writing any Posts on the latest DPP, and the Defence Offsets Policy , both under revision, presently. Lots come in the Press.

We will only log Posts once the documents are finally released by the MOD.

We are 'quiet' and 'patient' till then.

All the Best for 'Make in India' Initiative!

Offsets Partnership / JVs with Indian MSMEs

Reaching Indian MSMEs for Offset Projects could be a tedious process. Whom should we Partner with, and for which Products / Services? This needs to be a transparent, totally professional and ethical approach, especially during due diligence of 'the to-be-partner' company. It needs to be one2one between Foreign OEM and the Indian MSMEs. Govt. should only intervene if the would-be company is blacklisted, or unethical. As regards its technical competence, financials, and other attributes, let Foreign OEM be the sole judge. This will make the MSMEs rise from start-up stage. It will avoid a great deal of inadequacies, and the OEM would then be wholly responsible and accountable for any lapses.

Implementation of the Offset Projects should be strictly monitored.

'Made in India' e-Marketplace for Aerospace and Defence

Our Defence and Aerospace e-Hub www.IndianDefenceIndustry.com  /  www.FreeMarketsDefence.com is 'Made in India', and fully owned by us.

At some later date it could have FDI, Technology and Marketing partnership(s). It needs to be further adapted, and grown to harness MSMEs, Indian and Foreign, after due diligence by an independent agency in order to provide reliable and validated database for selection / empanelling for various supply chains. And upgrade its technology on further funding and partnership(s).

Foreign technology and marketing partners who believe in the latest drive of the Indian Prime Minister to "Make in India" are welcome to partner with Svipja Technologies.