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Revised Guidelines

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Appendix D (Refer to para 22 of Chapter I) DEFENCE OFFSET Guidelines The provisions in the Defence Procurement Procedure concerning offsets will be implemented as set out in succeeding paragraphs. 1. Objective of Defence Offsets The key objective of the Defence Offset Policy is to leverage capital acquisitions to develop Indian defence industry by (i) fostering development of internationally competitive enterprises, (ii) augmenting capacity for Research, Design and Development related to defence products and services and (iii) encouraging development of synergistic sectors like civil aerospace, and internal security.

Guidelines for banking offset credits are at Annexure-VII to Appendix-D. 6 Value Addition 5.9 The concept of value addition will apply only for direct purchase/export of eligible products. Value Addition will be determined by subtracting (i) value of imported components (i.e.) import content in the product and (ii) any fees/royalty paid. ...

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