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India likely to sign defence contracts worth Rs 46,000 crore

India, the tenth largest defence spender, is expected to sign defence offsets contracts worth over Rs 46,000 crore in the next five to ten years.



New Delhi: India, the tenth largest
defence spender, is expected to sign defence offsets contracts
worth over Rs 46,000 crore in the next five to ten years.

"In the 11th Plan, the value of offsets contracts is
likely to be more than Rs 10,000 crore... In addition,
(offsets worth) Rs 4,818 crore are at the contract negotiation
stage and Rs 31,500 crore are at other stages," Minister of
State for Defence M M Pallam Raju said on Wednesday.

Under the Defence Procurement Procedure (DPP), foreign
vendors have to reinvest at least 30 per cent of the deals
worth over Rs 300 crore in the Indian defence, civil aerospace
or internal security sector.

With India planning to spend over USD 100 billion for
the modernisation of its armed forces, there will be
investment of USD 30 billion in the three sectors.

The Minister said offsets provide an opportunity for
small and medium enterprises to emerge as suppliers for Indian
defence companies and earn a significant revenue out of these
propositions.

Raju said 12 offsets contracts worth Rs 9,943 crore
have already been signed and more than 85 public and private
sector companies have benefited from them.

As India looks to procure an increased number of
platforms such as unmanned aerial vehicles, Airborne Early
Warning Systems, refuelling tankers, battle tanks and missile
systems, it would need to develop a robust industrial base, he
said.

Raju said a committee has been formed under a senior
officer to study the existing offsets policy and it would
recommend further changes in it on basis of the suggestions
provided by the stakeholders including private sector defence
companies.

To increase self-reliance in defence sector and to
promote indigenous defence and related sectors, Government has
come up with its first-ever Defence Production Policy.

PTI

From Zee News

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