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25th September 2017 Part-2:Daily News Analysis
sir pricing offset clause not understand
A C
2 years ago
if we buy Japan made weapons we have to pay for it right.. thus losing that amount of money. This PRICE OFFSET CLAUSE makes it mandatory for japan to buy weapons (a portion of the amount that we bought from them).. this will reduce the amount of money that we loose. got it???
Akash Jindal
2 years ago
Thnx buddy
Mohini sharma
2 years ago
it is valid only in case of weapons only or in other import export...??
Akash Jindal
2 years ago
i think this is valid in every trade. if i m wrong so correct me
A C
2 years ago
Indian Government issued a Defense Procurement Procedure in 2006, revised in 2008 and 2011. The latter came into effect in August, 2012. The threshold is 3 billion RS (65 mil USD), 30% of offset. Multipliers exist. Above 300 billion RS (697 mil USD), there is a requirement of “indigenization,” that is a Buy Indian requirement for 30% or greater of the contract value. Indian companies and joint ventures are exempted from offset obligations provided the indigenous content is over 50%. For offset are also accepted subcontract in outsourced services, such as engineering, design, and defense software.
A C
2 years ago
@ Mohini - I think its for defense but i'm not sure.. anyone who has a clear understanding please help...
Mohini sharma
2 years ago
thanks Aarav...