The OCPP is a mix of revenue and capital procurement procedures, based on the Defence Procurement Manual 2006. It could have been an opportunity to lay down a more self-contained procedure.

Raising the FDI limit by itself may not enthuse the foreign investors as per the expectations. To make the defence sector more attractive for foreign investment, a whole lot of other related issues will have to be addressed by the government.

It would be helpful if MoD issues a formal order addressing the concerns expressed by various stakeholders about certain aspects of the negative list, especially its impact on projects that involve foreign OEMs and the purpose of bifurcating the capital budget.

The changes proposed in the offset guidelines require a fresh look, both on conceptual and empirical grounds, as the new regime is likely to yield diminishing returns.

Finetuning negotiation protocols and limiting the scope of negotiations could result in rapid conclusion of negotiations and contract finalisation.

Although the new measures announced to fast-track the defence sector are significant, they do not add up to a comprehensive and overarching reforms package.

Redrafting the chapter on post-contract management, expatiating the concept of contract operating officers and clearly defining their role and responsibilities vis-à-vis the other agencies, could go a long way in serving its purpose.

It would be advisable to review the proposed offset guidelines keeping in view the feedback from the industry, especially the foreign vendors who carry the primary obligation to execute the offset contract, as also the legacy issues.