India has signed defence offset contracts worth USD 4.27 billion in the last five-and-a-half years and Rs 1,17,319 crore has been spent on acquisition of military products from various indigenous sources, government told the Lok Sabha today.
In a written reply to the House, Defence Minister A K Antony said, “17 offset contracts have been signed so far with a value of about USD 4.279 billion… Offset policy was introduced in 2005. It is a relatively new policy and is in the process of evolution. The first offset contract was signed in 2007.”
Defence Ministry also tabled a report on the contracts which were signed by the country with an obligation of 30 per cent offset clause.
While the offset contracts worth around USD 3.435 billion were signed while procuring aircraft and systems for the Indian Air Force, Navy booked total offsets of worth USD 843 million while acquiring fleet tankers, maritime reconnaissance aircraft, radars and UAVs.
Tabling a report on Capital Acquisition for the defence forces, the Minister said that in 2006-07 Rs 21,612.24 crore was spent for the purpose, followed by 17,993.08 crore in 2007-08.
In 2008-09, Rs 20,347.74 was spent by the government. Last year, the sum spent on acquisition of defence products was Rs 31,445.55 crore, he said.
Since 2007, IAF has spent money on acquisition of new systems and aircraft and upgradation of the existing ones.
Some of the major contracts include the deal to upgrade existing fleet of MiG-29 fighter aircraft, acquisition of C-130J and C-17 transport aircraft and upgrade of mirage-2000 planes.
Replying to a question on amount spent on capital acquisition from foreign sources, Antony said, Rs 15,443.01 crore was spent in 2010-11
-via Business Standard.