Govt clears defence plan, revises offset policy

With Army Chief Gen V K Singh highlighting shortage of equipment, the defence ministry on Monday appeared to be fast-tracking decision-making as it approved a plan for development of capabilities and effected a major change in offset policy by including transfer-of-technology.

The Defence Acquisition Council, headed by Defence Minister A K Antony, also cleared the 15-year Long Term Integrated Perspective Planning which would project requirements of the armed forces to be met through indigenisation and robust involvement of private sector.

The two-hour meeting of the DAC was attended by Army Chief Gen V K Singh, IAF Chief N A K Browne and Naval Chief Nirmal Verma. Prior to this, Antony had an hour-long separate meeting with the army chief and other senior army officials to review the requirements of the force.

These meetings came days after Gen Singh flagged the issue of shortages and deficiences faced by the army like lack of ammunition for tanks and obsolesence of air-defence systems.

The 12th Defence Plan, approved by the DAC, charts the roadmap for development of capabilites of the three forces in tune with their future operational requirements and the role which the country will play within the region and outside.

The DAC also approved revised Defence Offset Guidelines

where it recognised transfer of technology for discharge of offset obligations, meeting a key demand of foreign companies.

"Revised policy recognises ToT as eligible for discharge of offset obligations. Investment in 'kind' in terms of ToT must cover all documentation, training and consultancy required for full ToT," officials said.

As per the changes, the ministry has demanded that the ToT should be provided without license fee and there should be no restriction on domestic production, sale or export.