Article Posted on : - Jul 16, 2009

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NEW DELHI (BNS): The Government has said contracts worth more than Rs 7,500 crore have been signed under the offsets clause of the Defence Procurement Procedure (DPP).

"Offsets contracts of more than Rs 7,500 crore have been signed till date. Contracts between foreign suppliers and Indian defence companies are resulting is setting up of manufacturing, design, testing and service centres in the defence industry," Minister of State for Defence M M Pallam Raju said while replying to a query in the Rajya Sabha on Wednesday.

Under the offsets clause, foreign suppliers winning Indian defence contracts of over Rs 300 crore are required to invest a minimum of 30 percent of the deal's worth back into the Indian defence Industry.

Replying to another query, Raju said the Heavy Vehicles Factory in Avadi would be overhauling 120 T-72 tanks in the present fiscal.