The Centre announced a new policy on Monday to get rid of offset contracts in government-to-government deals and single-vendor contracts for purchasing military equipment, the Hindustan Times reported. This was done as the offsets did not succeed in bringing top-grade technology into the country, a government official said.
The offset policy required foreign vendors to invest at least 30% of the value of all contracts worth more than Rs 300 crore awarded to them, in order to boost indigenous industry.
“No offset contract has led to transfer of technology into the country, with the scope being limited to product purchase as pointed out by the Comptroller and Auditor General in a recent report,” Director General (Acquisition) Apurva Chandra said during a presentation on the new Defence Acquisition Procedure-2020. “There will be no offsets in inter-governmental…