Defence Offsets India Fund: A Way Forward

Offsets come in 'Cash and Kind'. Leakages in Offsets are  common.

It is prudent that we create Defence Offsets India Fund regulated by an Agency of the MoD on the Concept of Escrow Account to utilise it efficiently, and prevent any leakages. Each Offset Project could be assigned money from this Fund. All inflow /outgo from the Fund are properly accounted.

In such a concept Obligors and MoD (Buyers) work in close co-ordination.

Svipja 

Made in India; Make in India, FDI, and Modern Technology Transfer in Defence

There have been wide ranging changes in policy on Defence Manufacturing in recent years including FDI support. FDI ultimately relates to Equity Holding in Indian Companies, sharing control with the Investor Partners. It would entail compromising ownership and related issues in our Defence Firms. Are we permitting such a condition?

Defence PSUs / Govt. Units, Vs, Private Sector Manufacturing is another issue. Farming Procurement Orders to the Private Sector is likely to remain in controversial discussions all the time...... a Major Policy Challenge! 

Presently most of the Defence Manufacturing and Control is with the Govt. Organisations. Its transition to the Private Sector has to be gradual. We must move to it Sub-System/System-based, and %-wise. Let us achieve 10% manufacturing of major systems for the Defence Forces in the Private Sector first in certain time frame on PPP Model, or some Other Model. Balance % of Systems selected for manufacturing in the Private Sector can be gradually assigned to them on seeing success of the first assignment. 

Made in India, Make in India then moves forward with FDI and Modern Technology coming from Abroad in certain cases.

We must retain our independence in all its facets in Defence.

Caution!