PAC flags ₹42,500 cr pending offsets in defense contracts
India's Public Accounts Committee (PAC) is worried about ₹42,500 crore in pending offset obligations from defense contracts that haven't delivered on promises.
The offset policy, meant to boost local industry by getting foreign suppliers to invest back in India, has fallen short, with nearly half of commitments in ongoing deals still unmet.
PAC: only $5.46bn of $9.9bn fulfilled
Out of $9.9 billion expected from these deals, just $5.46 billion has actually been fulfilled so far.
The PAC called out the slow progress and wants all pending obligations as of December 31, 2025 cleared immediately, plus an audit "to ascertain the true status of implementation."
They also flagged big delays in upgrading artillery for the Army and Air Force, and helicopters for the Air Force, noting that some equipment took decades to arrive, impacting readiness and modernization plans.