Business Standard

Letters: Arms and the offsets

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Business Standard New Delhi

Apropos your report “Ministry may dilute defence offset policy today” (February 23), permitting technology transfer as an offset, with or without the “multipliers”, is the most laudable objective to attain self-sufficiency in the development of weapons systems urgently needed for the modernisation of our armed forces. But pricing the high technology is still an uncertain science and caution is needed in not only putting a figure on its price or the attending multiplier. Putting the price on a case-to-case basis will open the way for future scams. Therefore, the Defence Research and Development Organisation should list in advance all the technological gaps needed to complete its current or future projects early — with necessary multipliers assigned to each technology. US suppliers’ claims that the Indian defence industry does not have the capacity to absorb large offsets is similar to its earlier practice of technology denial regimes under one pretext or another. The most opportune time for “arm-twisting” suppliers is while effecting high volume purchases. But our progressive dilution of the offset policy to appease suppliers is hard to understand. It looks as if the tail is wagging the dog and not the other way around.

 

R C Suri, Delhi

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First Published: Feb 27 2012 | 12:52 AM IST

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