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ARTICLE · 19 AUGUST 2015

Ministry Of Defence Relaxes Offset Discharge Procedures

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The procedure for implementing the offset provisions provided for in the DPP is provided in the Defence Offset Guidelines (DOG) annexed as Appendix D to the DPP.

IndiaGovernment, Public Sector
Rajiv Khaitan
Rajiv Khaitan
K A Alakiri
K A Alakiri
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The Indian government devised the Defence Procurement Procure (DPP) in order to leverage capital acquisitions to develop the Indian defence industry by fostering the development of internationally competitive enterprises and augmenting capacity for research, design and development related to defence products. The DPP makes defence offset obligations applicable to all capital acquisitions where the indicative cost is INR 300 crore (Indian Rupees three hundred crore) (approximately USD 46 million) or more covered under the following schemes:

  • 'Buy (Global)' involving outright purchase from foreign / Indian vendors; and
  • 'Buy and Make with Transfer of Technology' i.e. purchase from a foreign vendor followed by licensed production in India.

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