The Hindu Business Line : New defence procurement policy in April

New Delhi, Feb. 12 The Government is to announce in April this year a new Defence Procurement Policy, which is likely to bring about greater transparency and clarity in the offset clause in large defence deals, senior Government officials said on Tuesday.

Addressing a press conference to announce the fifth international land and naval systems exhibition, the Secretary, Defence Production, Mr Pradeep Kumar, said that the policy was also likely to fine-tune the offset clause for defence contracts.

“The Government has received a number of suggestions (on the offset clause). What we have accepted will be known in April when the new policy is announced. The intention of the new policy will be to provide greater transparency and make the process easier for companies. I do not know what the final outcome will be,” Mr Kumar said.

Currently, the Government has mandated that in defence contracts of over Rs 300 crore, companies have to undertake an offset agreement that mandates that they acquire goods worth 30-50 per cent of the value of the contract from India. However, several companies have expressed apprehensions about the implementation of the offset programme.

Meanwhile, the four-day fifth DefExpo which opens here on Saturday is to be the biggest event till date with more than 475 exhibitors, including 275 foreign exhibitors and 202 from India taking part.

“Various companies have indicated that there could be about 91 launches during the exhibition. We are expecting 47 official delegations, including six ministerial delegations from Afghanistan, Belarus, Ghana, Namibia and Nigeria,” Mr Kumar said.