Defense and Space Manufacturing Business Guide
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All 31 Documented Cases
उप-ठेकेदार प्रवाह-नीचे आवश्यकताओं का अनुपालन विफलता
₹250 crore max lost govt funding per Make-I project; 100% order quantity disqualification[1][3]Failure to properly manage flow-down of vendor eligibility criteria (Indian ownership/control, IC >50%, SCAGE registration) results in shortlisting rejections and lost bids under Buy (Indian-IDDM) and Make categories.
Offset Obligation Compliance और Technology Transfer Cost Burden
₹20-40 crores annually (estimated: 30% of offset on ₹300 crore contract = ₹90 crore offset obligation; 5-8% administrative overhead + lost optimization = ₹4.5-7.2 crores; typical 3-5 contract portfolio impact = ₹20-40 crores cumulative)Defence Acquisition Procedure (DAP) 2020 mandates 30% offset on defence procurements >₹3 billion. Offsets include local manufacturing, R&D investment, ToT agreements, and vendor development. Progress payment contracts distribute offset obligation across 24-48 month timelines. Manual offset tracking across sub-vendors, TTA approvals, and cross-charge allocations creates cost leakage and missed offset credit realization.
अनुपालन दंड (Compliance Penalties)
₹1-5 lakh per audit finding; up to 10% contract value in penalties for EVMS failures (logic: min statutory under DAP; typical 2-5% loss)EVMS is government-mandated for major A&D contracts; non-compliance with reporting standards leads to audit failures, contract disputes, and fines in regulated MoD procurement.
क्षमता हानि (Capacity Loss)
20-40 hours/month per project at ₹2,000/hour engineer rate (₹40,000-80,000/month loss); 15-25% EBITDA erosion for ₹50-500 crore firmsEVMS requires detailed WBS/OBS tracking; manual processes in 10,000-12,000 MSMEs cause idle resources and lost production time.