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The OEMs were asked to explain why they have not implemented their offset contracts and by when they would discharge their duty
The Defence Offset Management Wing of the Ministry of Defence last week summoned all the Original Equipment Manufacturers (OEMs) who have not honoured their offset commitments. The OEMs were asked to explain why they have not implemented their offset contracts and by when they would discharge their duty. Four sessions lasting about an hour each were held with the defaulters. Among them are the world’s largest defence companies. These companies had sold their wares to the government of India and had agreed to invest in India, 30% of the payment received from the government. WDA-Best NDA Coaching in Lucknow | Top NDA Coaching in India
They had signed separate offset contracts along with the contracts for the sale of their equipment. Sources said about three dozen companies were called by the MoD to seek an explanation. The MoD, however, did not insist on any deadline for fulfilling the offset commitment. Neither did the OEMs offer any time schedule for the same, sources said. As a result, the stalemate between MoD and the OEMs continues, putting a question mark over the success of the government’s offset policy.