India may forego offset package for S-400

22 February 2017 Mikhail Nekrasov
An offset package could delay deliveries by up to two years.
S-400 Triumf is Russia’s long-range anti-aircraft missile system that went into service in 2007. Source: Mikhail Voskresenskiy/RIA Novosti

India's Defence Ministry may forego the offset clause to speed up deliveries of the S-400 Russian air defence system, The Economic Times reported on Feb. 21.

The offset clause mandates foreign companies to invest at least 30 per cent of the contract value in the Indian aerospace and defence sectors. 

Viktor Kladov, director of international cooperation at Rostec holding, told the paper that the purchase of the S-400 is a strategic project and delivery should not be delayed by offset packages.

According to Kladov, the offset package may delay delivery by up to two years. A deal with no offset package is the best choice, he added. 

The S-400 Triumf is a Russian long and medium-range air-defence missile system, designed to provide complete air defence, against all current and future air and space attacks, at distances of up to 400 km.

An intergovernmental agreement on the sale of the S-400 was signed in October 2016 at the 17th India-Russia summit between President Vladimir Putin and Indian Prime Minister Narendra Modi.

The agreement to buy five divisions of the S-400 system is worth $6 billion. Final negotiations will start in March.

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