Parliamentary panel pulls up defence ministry over Rs 42,500 crore offset dues

A parliamentary committee has raised serious concerns over India’s defence offset policy. India's foreign military equipment suppliers are yet to fulfil obligations worth Rs 42,500 crore (approximately $4.5 billion). The Public Accounts Committee (PAC), in a report tabled in Parliament, noted that nearly 45 per cent of offset commitments under 26 ongoing contracts remain pending, despite the policy being in place since 2005.The offset framework, designed to reduce the outflow of national resources, facilitate technology transfer and strengthen the domestic industrial base, mandates foreign suppliers to reinvest a portion of large defence deals into India’s industry and Research & Development apparatus. The PAC report reveals that of the $9.9 billion offset obligations under current contracts, only $5.46 billion worth have been discharged.