Defence ministry revises offset policy to include technology transfer

Revelations of shortage of equipment for the armed forces that have been highlighted in the leaked correspondence of Army Chief Gen V K Singh to the prime minister seems to have its desired effect with the defence ministry fast-tracking decision-making on development of indigenous capabilities and incorporating transfer of technology in defence offset policy for overseas equipment buying.

The Defence Acquisition Council (DAC), headed by defence minister A K Antony also cleared the 15-year long term integrated perspective planning (LTIPP), which would project requirements of the armed forces to be met through indigenisation and robust involvement of the private sector.

The decisions came after a two-hour meeting of the DAC attended by the three services chiefs, including Gen V K Singh, Air Chief Marshal N A K Browne and Admiral Nirmal Verma.

The DAC approved revised Defence Offset Guidelines (DOG) where it recognised transfer of technology (ToT) for discharge of offset obligations, meeting a key demand of foreign companies.

Earlier, Antony had an hour-long separate meeting with the Army Chief and other senior Army officials to review the requirements of the force.

At the meeting, Antony reviewed various issues and proposals relating to acquisition for the Indian Army on capital and revenue accounts. Today's meeting was in continuation of his earlier review meetings held in September 2011 and January 2012.