Minister of State for Defence M M Pallam Raju said today that defence offset proposals worth Rs 49,000 crore are in the pipeline.
Offsets are the rule that any foreign military supplier must source a specified proportion of components from India. Raju was speaking at a seminar on ‘Leveraging Offsets for Naval Self Reliance’ organised by the Confederation of Indian Industry.
He also said that, because of the complexity in supervision of offsets, an administrative infrastructure to facilitate offset banking has been put in place. He said this was a business opportunity for the private sector as the public sector alone would not be able to absorb the large volume of offsets that are likely to be generated in future.
Raju urged the industry to take advantage of the ‘Buy and make’ (Indian) category of items in the Defence Procurement Procedure, which facilitates joint ventures with foreign companies. He also stated that a strong defence industry would help India in leveraging its buying power, expanding technological base, facilitating global tie-ups and joint ventures.
Vice-Admiral N N Kumar, controller of warship production and acquisition, Integrated Headquarters, Ministry of Defence (Navy) said a strong domestic industrial base can be developed.
