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ARTICLE · 29 APRIL 2020

Changes To Offset Provisions Under Draft Defence Procurement Procedure 2020

Khaitan & Co.
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The draft Defence Procurement Procedure 2020 (DPP) released by the Ministry of Defence proposes a plethora of vital amendments with the objective of growing domestic capability and achieving national security objectives.

IndiaGovernment, Public Sector
Kabir Bogra
Kabir Bogra
Rajiv Khaitan
Rajiv Khaitan
Tushaar Talwar
Tushaar Talwar
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The draft Defence Procurement Procedure 2020 (DPP) released by the Ministry of Defence proposes a plethora of vital amendments with the objective of growing domestic capability and achieving national security objectives. One of the significant overhauls in the draft DPP 2020 is in the offset guidelines, which is a key concern for foreign OEMs supplying under previous and current DPPs.

In recent iterations of the DPP, the Ministry of Defence has simplified and clarified several aspects of the offset framework, including ownership norms of offset partners, flexibility in appointment of offset partners, indigenous content requirements, etc. In the same vein, the Ministry of Defence has now proposed the following amendments to the offset framework under the DPP:

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