VZCZCXYZ0012
RR RUEHWEB

DE RUEHNE #8223/01 3420718
ZNR UUUUU ZZH
R 080718Z DEC 06
FM AMEMBASSY NEW DELHI
TO RUCPDOC/USDOC WASHDC
RUEAHLC/HQ ICE IAO WASHINGTON DC
INFO RUEHC/SECSTATE WASHDC 1222

UNCLAS NEW DELHI 008223 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR 532/OEA/M. NICKSON-DORSEY/J. 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: ORDNANCE FACTORY DEHRADUN, 
UTTARANCHAL, LICENSE NO. D364154 
 
REF: USDOC 06144 
 
¶1. Unauthorized disclosure of the information provided below is 
prohibited by Section 12(c) of the Export Administration Act. 
 
¶2. Embassy Science Officer (SO) Donald Brown and BIS FSN Prem 
Narayan conducted a Pre-license Check (PLC) at Ordnance Factory 
Dehradun (OFD), Dehradun, Uttaranchal, on November 28, 2006. 
 
¶3. BIS requested a PLC at OFD, a GOI-owned unit under the Ordnance 
Factories Board, Ministry of Defence (MOD), located at Raipur, 
Dehradun, Uttaranchal 248008, Tel: 0135-278-7120, Fax: 
0135-278-7177, email: itofddn@sanchar.net.in, Website: 
www.ofbindia.gov.in.  OFD was listed as the ultimate consignee for 
one electron beam physical vapor deposition machine, Model Orion 
BC-3600 controlled under ECCN 2B005.  The license applicant was 
System Control Technology Inc. (SCT), Livermore, CA. 
 
¶4. The SO and FSN Narayan met with S. Chandrasekhar (Chandrasekhar), 
General Manager; R.S. Puri (Puri), Additional General Manager; G. 
Vishwanadham (Vishwanadham), Joint General Manager and G.S.R. 
Prabhakar (Prabhakar), Joint General Manager. OFD. Under Secretary 
(AMS) Prashant Agrawal (Agrawal), Ministry of External Affairs 
(MEA), GOI, facilitated the meeting.  Agrawal was also present in 
the meeting. 
 
¶5. OFD officials were not aware of the BIS or aware of BIS 
regulations.  This was the first USG or BIS official visit to OFD in 
Dehradun.  OFD officials stated that on November 17, 2004, they 
floated a global tender for purchasing an electron beam physical 
vapor deposition machine high vacuum thin film coating applications. 
 SCT submitted a bid on February 5, 2005 for supplying the coating 
plant.  Since their proposal met the technical specifications and 
had the best price, SCT was awarded the order.  Puri provided a copy 
of the OFD supply order, the SCT quotation along with the technical 
specifications, OFD End-Use Statement, and correspondence between 
OFD and SCT concerning the proposed transaction. 
 
¶6. Prabhakar gave a detailed slide presentation on various optical 
surveillance devices that OFD manufactures including the end-use of 
the thin film coating plant.  He stated that the thin film coating 
plant on order would replace the existing (European-supplied) plant 
that is approximately 30 years old.  The new plant will be used for 
the same purpose as the existing plant is being used.  The primary 
difference is the old plant is analog controlled and the new plant 
is digitally controlled. 
 
¶7. Prabhakar confirmed the stated end-use.  The thin film coating 
plant will be used to coat glass binocular lenses.  He stated that 
the thin film interference coatings are routinely added to optical 
components to enhance reflectivity or to minimize reflective losses 
at air-glass interfaces.  Such coatings are mandatory on optical 
instruments as modern optical devices comprise of multi-element 
designs to achieve the required image quality.  In addition to 
minimizing reflective losses, the coating is also helpful in 
protecting the lens' surface.  OFD will use the thin film coating 
plant for various coatings, including single layer MGF2 
anti-reflection coatings, double layer narrow band 'V' coatings, 
broad band anti-reflection coatings, aluminized front surface 
mirrors and chrome deposition for reticles.  The process of coating 
the lenses takes approximately 4-5 hours.  The finished coated 
lenses will be integrated into optical surveillance devices that OFD 
manufactures for the Indian armed forces.  The plant runs in two 
shifts and is guarded 24 hours a day.  SO Brown and FSN Narayan were 
given a brief tour of the facility where the existing plant is 
operating.  The new plant on order will be installed at the same 
place replacing the existing plant. 
 
¶8. Established in 1943, OFD is one of the 39 
ammunition-manufacturing factories, functioning under the aegis of 
the Ordnance Factory Board (OFB), headquartered in Kolkata, 
Department of Defence Production, MOD.  In addition to 39 factories, 
OFB has 58 laboratories.  OFD is engaged in the production of 
optical surveillance devices and mechanical instruments including 
compasses and clinometers.  It also manufactures precision 
mechanical components, optical components including convex and 
concave lenses, prisms and mirrors, assembly and testing of optical 
instruments for surveillance.  In addition, OFD produces snow 
goggles, airfield lighting equipment including taxiway lights, small 
and large size reflectors.  The prime customers of OFD are all three 
armed forces of India, Para-military forces under the Ministry of 
Home Affairs and other defence departments.  OFD employs 
approximately 1,575 personnel. 
 
¶9. Recommendation: Post recommends Ordnance Factory Dehradun as a 
 
reliable recipient of the controlled U.S. origin commodity.  All 
indications are that the listed commodity will be used in accordance 
with U.S. export control regulations (DBROWN/PNARAYAN) Mulford