Explore Financials Updates

Futuristic Offset Policy

11 March, 2016

Futuristic offset policy is in draft stage at present. The new draft offset guidelines envisage targeted offsets, wherein, the desired outcome will be stated upfront in the RFP and the vendors have full flexibility on process to realize the outcome. Targeted offsets will include Transfer of Technology, development of ecosystem in defence manufacturing and creation of infrastructure for skill creation and development.

Ten (10) offset contracts have been signed since 2013 onwards, amounting to 1.56 BUSD. The offset discharge is spread till year 2022. The contractual offset obligations to be fulfilled by the vendors upto December, 2015 is USD 80.22 Million against which offset discharge claims worth USD 65.99 million have been reported (subject to Audit). 

Disinvestment of DPSUs

1 March, 2016

Government has approved disinvestment of the following defence sector CPSEs:

1. Bharat Electronics Limited (BEL): 5% paid-up equity of BEL out of Government of India’s shareholding of 75.02 per cent, through Offer for Sale (OFS).
2. Hindustan Aeronautics Limited (HAL); 10% paid-up equity of HAL, through Initial Public Offer (IPO).
3. Strategic sale of Defence Public Sector Undertakings (DPSUs) is not contemplated.