The total offset commitment by foreign defence companies to be fulfilled in India for various defence deals during the last 15 years, was $6.83 billion till August 01, 2022 of which they fulfilled offset claims worth 82.13% or about $5.61 billion, the Defence Ministry informed Parliament. Expressing concern over the shortfall, MP Kunwar Danish Ali who raised this question said this “huge money could revive MSME (Micro, Small and Medium Enterprises) sector and create a lot of jobs.”
“Total 15 companies have missed the first deadline set for implementation of their defence offset commitment. Further details being strategic and sensitive in nature, cannot be disclosed,” Minister of State for Defence Ajay Bhatt said in a written reply in the Lok Sabha, on Friday. “For unfulfilled offset obligations, penalty as applicable has been imposed on the defaulting vendors as per the governing Defence Offset Guidelines.”
