Offset provisions in new defence procurement policy will be a boon: ACM Fali Major

Chennai: The amended Defence Procurement Policy 2008 (DPP), due to come into effect from 1 August, would help the country in a big way by ensuring availability of latest technologies at home as well as their absorption, chief of the Indian air staff, air chief marshal Fali H Major today said.

The ACM was delivering the convocation address at the Indian Institute of Technology, Madras here. Without stepping into details, ACM Major said that the reworked offset clause would ensure production of a specified percentage of the orders within the country.

"For example, the contract for 120-odd medium multi-role combat aircraft at a cost of around Rs50,000 crore would help India get 50 per cent of the total production as offset. This ensures availability of latest technologies and lateral absorption to India," he said.

ACM Major did not dwell into details since the "policy would be made public soon."

The DPP 2008, approved early this month, will come into effect from 1 August and carries about 40 amendments on the provisions of the earlier DPP 2006.

Pointing out that India was yet to be self-reliant in defence production, ACM Major asked for increased private participation in this area. "We need to progressively move defence research from the public sector to private and into capable minds and hands. We recognise the versatility and capability of the private sector and a fruitful partnership can be created," he said.

"The IAF is a military instrument of our nation. It is not sufficient to be good and up-to-date; but essential to remain ahead of our adversaries," he said.