Article Posted on : - Dec 15, 2009

DRDO’s Rustom UAV on display in Aero India 2009 in Bangalore. A File Photo.

NEW DELHI (BNS): The government signed about ten offset contracts worth Rs 8,909 crores under Defence Procurement Procedure (DPP) with weapons making companies from countries like Russia, Israel and the United States.

Indian Defence Minister A K Antony told Parliament on Monday that about 10 offset contracts have been signed so far under the DPP.

The companies with which the offset contracts have been signed include Rosoboronexport and RAC MiG from Russia, Lockheed Martin and Boeing from the US, Israel Aerospace Industries and Etta from Israel and Fincantieri from Italy.

Under the offsets clause of the DPP, foreign vendors have to invest minimum 30 per cent of all the contracts worth over Rs 300 crore into the Indian defence industry.

Stating that DRDO has tied up with the IAI for developing Long-Range and Medium-Range Surface-to-Air missile, Antony said “The cost of project for LR-SAM is Rs 2,606.02 crore and MR-SAM project is Rs 10,075 crore.”

He also informed Parliament that DRDO was also developing a Medium Altitude Long Endurance (MALE) Unmanned Aerial Vehicle (UAV) for the three services and the project was expected to be completed in 78 months after the project approval.