VZCZCXYZ0009
RR RUEHWEB

DE RUEHNE #7749/01 3170840
ZNR UUUUU ZZH
R 130840Z NOV 06
FM AMEMBASSY NEW DELHI
TO RUCPDOC/USDOC WASHDC
RUEAHLC/HQ ICE IAO WASHINGTON DC
INFO RUEHC/SECSTATE WASHDC 0485

UNCLAS NEW DELHI 007749 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR 532/OEA/M. NICKSON-DORSEY/JAY HATFIELD 
USDOC FOR 3131/USFCS/OIO/ANESA/KREISSL 
USDOC FOR 4530/MAC/ANESA/OSA 
ICE HQ FOR STRATEGIC INVESTIGATIONS 
STATE FOR EB/ESP 
 
E.O. 12958: N/A 
TAGS: ETTC ETRD BEXP IN
SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: GUJARAT NARMADA VALLEY 
FERTILIZERS COMPANY LTD., DIST. BHARUCH, GUJARAT, LICENSE NO. 
D362905 
 
REF: USDOC 05388 
 
¶1. Unauthorized disclosure of the information provided below is 
prohibited by Section 12(c) of the Export Administration Act. 
 
¶2. Export Control Officer (ECO) Michael Rufe and BIS FSN Prem 
Narayan conducted a Pre-license Check (PLC) at Gujarat Narmada 
Valley Fertilizers Company Ltd. (GNFC), Bharuch Dist. Gujarat, on 
November 2, 2006. 
 
¶3. BIS requested a PLC at GNFC, a Gujarat State Government Public 
Sector Undertaking (PSU), located at: P.O. Narmadanagar 392015, 
Dist. Bharuch, Gujarat, Website: www.gnfc.com. GNFC was listed as 
the Ultimate Consignee for 10 Tantalum capped tubes controlled under 
ECCN 2B350.  The license applicant was Titan Metal Fabricators Inc. 
(Titan), Oxnard, CA. 
 
¶4. The ECO met for approximately 2 hours with M.N. Tirmak (Tirmak), 
General Manager, B.R. Patel (Patel), Additional General Manager, and 
V.M. Patel Senior Manager (Purchase), GNFC. The meeting was 
facilitated by Deputy Secretary (AMS) Prashant Arawal (Agrawal), 
Ministry of External Affairs (MEA), GOI.  Agrawal was also present 
in the meeting. 
 
¶5. GNFC officials were aware of certain BIS regulations.  GNFC has 
been party to previous BIS export licenses.  Patel recalled that the 
officials from the American Consulate General, Mumbai, visited GNFC 
approximately 7-8 years ago to conduct a PSV for a BIS export 
license.  They provided a copy of the GNFC corporate brochure, Titan 
quotation, GNFC Purchase Order and the End-Use statement.  Based on 
the risk report statement that GNFC is a supplier of liquid nitrogen 
to ISRO. The ECO inquired whether they sell or provide product to 
ISRO.  The officials stated no.  A website search did not find 
liquid nitrogen as a GNFC product. 
 
¶6. Patel confirmed the stated end-use of the Tantalum capped tubes. 
He stated that GNFC manufactures approximately 750 tons of weak 
nitric acid (WNA) and 250 tons of concentrated nitric acid (CNA) per 
day.  CNA is manufactured at their CNA-I and CNA-II plants.  GNFC 
uses three heat exchangers for two plants for the production of 
nitric acid.  Two heat exchangers are integrated into the two plants 
and the third is kept as standby.  Currently, the third heat 
exchanger is currently under repair and will be operational after 
the tubes on order will replace the existing faulty tubes. 
 
¶7. The Tantalum capped tubes are already being used in all three 
heat exchangers.  Approximately 55 Tantalum capped tubes are used in 
one heat exchanger.  The new Tantalum capped tubes on order will 
replace the plugged and damaged tubes in the third heat exchanger. 
The Tantalum capped tubes are fragile and require careful handling. 
The tubes usually get damaged while in transit or when the 
maintenance work is being carried out or due to manufacturing 
process upsets.  Tantalum is a tough, ductile metal and its 
corrosion resistance and heat transfer properties make Tantalum a 
perfect construction material for a wide range of equipment 
especially for heat exchangers.  The ECO was taken to the site of 
plants CNA-I and II.  The ECO was also taken to the inventory  area 
and shown the plugged and damaged Tantalum capped tubes that need to 
be replaced. 
 
¶8. Established in 1976, GNFC is a joint sector enterprise promoted 
by the Government of Gujarat and the Gujarat State Fertilizer 
Company Ltd. GNFC is the largest producer of fertilizers in India. 
The products range manufactured include urea, ammonium nitro 
phosphate, calcium ammonium nitrate, ammonia, weak nitric acid, 
concentrated nitric acid, hydrogen, methanol, formic acid, methyl 
formate and acetic acid.  Narmada Chematur Petrochemicals Limited 
(NCPL) is a fully owned subsidiary of GNFC that produces aniline and 
toluene di isocyanate (TDI). GNFC sells fertilizers directly to 
farmers and cooperatives under the directives of the GOI Department 
of Fertilizer.  The industrial chemicals manufactured by GNFC are 
sold to chemical production facilities, textiles, leather, and 
rubber industries.  It has a network of approximately 30 marketing 
offices spread throughout India through which it sells fertilizers 
and industrial chemicals produced by GNFC. They have several 
technical collaborations with overseas companies including Texaco, 
DuPont, and Entrust of the United States.  GNFC employs 2,400 
personnel.  Sales for the fiscal year 2005-2006 were approximately 
$500 million. 
 
¶9. Recommendation: Post recommends Gujarat Narmada Valley 
Fertilizers Company Ltd. as a reliable recipient of the controlled 
U.S. origin commodities.  All indications are that the listed 
commodities will be used in accordance with U.S. export control 
 
 
 
regulations (MKRUFE) Mulford