The total value of discharged defence offsets in India has grown strongly since 2020, according to Indian MoD statistics. (Indian MoD)
Foreign companies have implemented defence offsets in India worth USD6.83 billion in the past 15 years, India's Minister of State for Defence Ajay Bhatt has said in parliament. This total, he added, represents 82% of foreign firms' total offset obligations in the period up until 1 August.
In his parliamentary reply, Bhatt said 15 foreign companies have “missed the first deadline” set for offset obligations but gave no details. He also pointed to measures that the Indian Ministry of Defence (MoD) has introduced to prevent foreign suppliers defaulting on, or delaying, their offset obligations.
“For unfulfilled offset obligations, penalties, as applicable, have been imposed on the defaulting vendors as per the governing defence offset guidelines,” said Bhatt. “Further, in genuine cases, re-phasing of offset obligations has been allowed to enable vendors to discharge the pending offset obligations.”
Statistics issued by the MoD in June 2022 differ from those disclosed by Bhatt. These statistics showed that offsets worth USD4.3 billion had been discharged as of 8 June. The statistics also show that offsets claims worth USD1.12 billion are either incomplete or are under examination by the MoD's Defence Offset Management Wing (DOMW).
The MoD statistics also show that the value of completed defence offset obligations has grown significantly in the past two years. According to the statistics, the value of discharged offsets in March 2020 was USD1.62 billion and by June 2022 this had grown by 166% to USD4.31 billion.
The MoD has not outlined the reasons for the increase. However, DOMW officials had previously confirmed to Janes
Looking to read the full article?
Gain unlimited access to Janes news and more...
