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Com Min to soon seek Cabinet nod on national offset policy

The draft policy proposes that foreign firms selling goods worth over Rs 300 crore to the government or PSUs will have to source part of their supplies from domestic manufacturers. "The draft policy was discussed comprehensively in the Committee of Secretaries meeting.

March 19, 2015 / 15:27 IST
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Commerce and Industry Ministry would soon seek Cabinet's approval to roll out a national offset policy that proposes to make it mandatory for foreign firms source part of their government or PSU contracts from domestic manufacturers.

The draft policy proposes that foreign firms selling goods worth over Rs 300 crore to the government or PSUs will have to source part of their supplies from domestic manufacturers. "The draft policy was discussed comprehensively in the Committee of Secretaries meeting.

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The Commerce Ministry has addressed issues being raised by some concerned ministries. "Soon, it would send the draft national offset policy (NoP) for Cabinet's approval," a senior government official told Media. NoP 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.