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India has signed 21 offset defence contracts worth US $ 5.67 billion in last three years: MoS for Defence Dr Bhamre

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As many as 21 defence offset contracts with a cumulative value of approximately US $ 5.67 billion have been signed by the (MOD) in the last three years, the has been informed,

"MOD has assigned a study through the (IDSA) to ascertain the impact of offsets on Indian defence industrial base. The interim report has been received," said (MoS) for Defence Dr in a written reply to a question of Ritabrata Banerjee in the

An is a type of side deal, sometimes best described as a sweetener. This is an agreement between two or more parties that provide additional benefits and is ancillary to another negotiated contract.

Defence industry sector was first opened up in May 2001 for 100 per cent by the Indian private sector including foreign direct investment (FDI) up to admissible cap both subject to licensing.

"(DIPP) vide press note 5(21016) notified revised FDI policy under which FDI is allowed under automatic route up to 49 per cent and beyond 49 per cent through the route whenever it is likely to result in access to modern technology or for other reasons to be recorded," said Bhamre in his reply in the on Monday.

"So far, 41 FDI proposals or joint ventures have been approved in defence sector for manufacture of various defence equipment, both in public and private sector. Further, the has so far issued 430 licenses till December 2018 for of various licensable defence items," he said.

He said that FDI of Rs 1.16 crore has been received under 3 Industrial Classification (NIC) codes of defence sector as informed by DIPP.

"In addition, six companies, for which FDI approval had been accorded, received Rs 237.44 crores in defence and since April 2014 in other than 3 NIC codes," he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, February 12 2019. 12:27 IST