No Rethinking on Defence Offsets: MoD

New Delhi, May 11 (UNI) The Government today ruled out any rethinking on its Defence Offset Policy -- expected to bring in at least 10 Billion Dollars during the Eleventh Plan period (2007-11).

An official spokesperson here made it clear that an upcoming seminar on the subject next week had ''nothing to do with the review of offset provisions''.

The spokesperson was reacting to reports in a section of the media speaking of ''a midterm review'' of the Defence Offset Policy at the seminar.

The spokesman further clarified that the offset policy had been designed by the Defence Ministry ''carefully after studying all aspects between direct and indirect offset''.

''In order to encourage Indian Defence Industry, a well considered decision was taken not to allow indirect offset... There is no rethinking on this subject as reported in a section of the media'', he said.

India is looking for direct offsets in all capital acquisitions of the Defence Ministry to strengthen the capabilities of its indigenous industry.

The Government had announced in June 2005 the new policy for capital acquisitions in which the minimum requirement is of 30 per cent offsets in all acquisitions where the purchase cost exceeds Rs 3 billion.

Nearly 80 per cent of all offsets are in the area of aerospace.

UNI