Ajai Shukla’s article “Nobody’s baby: The offset orphan” (September 6) made for an interesting read. A company that wants to participate in the offset programme will find contradictions in the government’s Department of Industrial Policy and Promotion (DIPP) policy and the practice of the ministry of defence (MoD). The MoD is holding a strong position on the “eligibility” of companies to deliver the offset requirements of the original equipment manufacturers (OEMs). Though the legal position, according to the DIPP policy, allows wholly-owned foreign subsidiaries to participate in the offset programme, the MoD has taken a contrary view. There is a difference between direct participation in the MoD programmes – for which the restrictive foreign direct investment policy would apply – and the offset programme through OEMs, which is indirect participation by the Indian industry in defence programmes.
The technological independence that the MoD is envisaging cannot be achieved unless the country can generate skilled manpower and quality resources in this area. If 100 per cent foreign subsidiaries in India are delivering the offset programme of the OEMs in India, with Indian resources, it is actually contributing to the generation of skilled manpower and quality of resources in the area of defence-related technologies. The contrary view that the MoD has taken on the “eligibility” criteria of the offset programme is not conducive to the industry that is looking forward to participate in it.
Guna Thantry, Bangalore
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