| Date: |
20-03-2015 |
| Subject: |
Commerce and Industry Ministry to soon seek Cabinet nod on national offset policy |
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NEW DELHI: The commerce and industry ministry will soon seek Cabinet approval to roll out a national offset policy that proposes to make it mandatory for foreign firms source part of government or PSU contracts from domestic manufacturers.
The draft policy proposes that foreign firms selling goods worth over.`300 crore to the government or PSUs will have to source part of their supplies from domestic manufacturers.
"The draft was discussed comprehensively in the Committee of Secretaries meeting. The ministry has addressed issues being raised by some concerned ministries. "Soon, it would send the draft national offset policy for Cabinet's approval," said a senior government official.
The policy mainly aims at boosting growth in the manufacturing sector. It will also help attract investments; acquisition of new technology, raw material and assets; improve balance of payment; increase R&D capacity and enhance exports.
Minimum value of the offsets obligation would be 30% of the estimated cost of import, which means that the company will have to procure this percentage from local players as the government aims to boost domestic manufacturing.
Source : economictimes.indiatimes.com
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