The deal for 93,895 Close Quarter Carbines (CQBs) for the Indian Army, for which United Arab Emirates (UAE)’s government-owned small arms manufacturer Caracal was shortlisted, is like a “benchmark” for UAE industry and they are watching closely on further investments in the Indian market, said Hamad Salem Alameri, Chief Executive Officer (CEO) of Caracal in an interview to The Hindu.
“Once this first contract moves, lot of sister companies within the group will see this as a success story and people will have the confidence to come and invest in India,” Mr. Alameri said. He said this was the most important message that everyone is looking at and people are willing to come and invest in India and create jobs with the blessings of the two governments.
However, while Caracal was shortlisted two years back, the final deal has been delayed and recently an in-principle decision was taken in the Defence Ministry to cancel the deal and take the domestic route for procurement. But no formal announcement has been made so far.
“Nothing came to us officially on the cancellation or on the intent of cancellation,” Mr. Alameri said.
He said in the last two years Caracal had developed lot of suppliers and technology partners and the starting point of indigenisation will be 60%. Stating that Caracal has already identified four locations to set up the facility and also identified local partners to be able to commence production immediately, Mr. Alameri said India is already part of their global supply chain and over 20% of the components fitted on the CAR 816 are already made in India.