A small note for mentioning the big Defense offsets is in order.As more and more regular systems get finalized for readymade projects in Defense happens,higher level of offsets get accrued for the contractors,the possibility of services including T&M shoots up.A figure around offsets of 10 B$ etc
is mentioned at this time.
Naturally these figures will increase a lot when the DPP 2016 is announced and procurement under local production and from MSME is undertaken.Both these activities will trigger the increase of T&M content in offset procured thru local vendors. Our estimates creates a figure of around 5 pct of the Total offset is envisaged.
The Government is still to classify the offset percentage related to T&M and therefore due caution is needed so our estimates on T&M don't go overboard.Right now we need to contend with five percent as good approximation.
More we will cover in next months blogs when we hear some major contracts finalized.
No comments:
Post a Comment