20 % penalty for foreign military vendors not meeting offset obligations

The Ministry of Defence announced a penalty of 20 % to be imposed on foreign military vendors who are ubable to fulfill offsets obligation within the prescribed time frame as part of the Defence Procurement Procedure.

· No cap on penalty for inability to implement offset obligations during the period exceeding the main procurement contract, which can extend to a maximum period of two years.

· Vendors signing deals over Rs 300 crore have to re-invest at least 30 % of the worth of the contract back into Indian defense, civil aerospace and homeland security sector.

· India is expected to sign offset contracts worth over $30 billion in the nexthttps://www.gktoday.in/wp-admin/edit.php five years.

Month: Current Affairs - August, 2012