Targeting big bucks
ministers eye defence offsets
ministers eye defence offsets
Politicians seem to
have a knack for smelling out the moolah! Seeing the big bucks in the
defence offsets programme, several ministers have joined retired
military and air force officers in strengthening the offset policy, so
to speak. Gfiles has come to know that the scions of various
interested defence officers flew to Russia, France, Israel and the USA
to discuss participation modalities with companies who have bagged
orders or are likely to corner big deals. Under its defence procurement
procedure, India imposes counter-trade obligations on original equipment
manufacturers (OEMs) awarded defence contracts worth more than Rs 300
crore to transfer critical technologies and production of components to
India. The revised (offsets) policy recognises transfer of technology
(ToT) as eligible for discharge of offset obligations. The policy says,
“The ToT should be provided without licence fee and there should be no
restriction on domestic production, sale or export. The offset credit
for ToT shall be of 10% of the value of buy-back by the OEM during the
period of contract, to the extent of value addition in India.” So every
arms supplier has to transfer technology and for that he needs local
collaborators. Who better than politicians and retired army personnel!
It also suits the supplier as he can make inroads into the Defence
Ministry through retired officials and into the government through
ministers. And, under the guise of the offset policy, it’s all legal –
and big money. g
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