New Delhi : Foreign companies selling goods worth over Rs 300 crore to government or PSUs would have to source part of their supplies from domestic manufacturers, according to the new draft National Offset Policy (NOP), reports PTI.

According to the draft policy prepared by the Commerce Ministry, minimum value of the offsets obligation would be 30% of the estimated cost of the import, meaning the company will have to procure this percentage from local players to boost domestic manufacturing.

“This was proposed by the Ministry in the draft policy which would be considered the Committee of Secretaries headed by the Cabinet Secretary by the end of this month and then it would be approved by the Union Cabinet,” sources told PTI.

The policy is aimed at boosting manufacturing sectors growth. Besides it would help in attracting investments; transfer and acquisition of new technology; acquisition of raw material and assets; improving balance of payment; increasing capacity for R&D; long term supply pacts; and enhancing exports.

The policy would be applicable to the central government and state-run firms procurement. Sectors that will be covered under the NOP include civil aerospace, power, fertiliser, railways and other transportation, ports and shipyards, mining, medical equipment, medicine and telecom.

However sectors including defence, atomic energy and space would not be covered. Defence sector has a separate policy while atomic energy and space would pursue offsets in their contracts independently.

(To view our epaper please click here. For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal

www.freepressjournal.in