VZCZCXYZ0016
RR RUEHWEB

DE RUEHNE #0597/01 0380643
ZNR UUUUU ZZH
R 070643Z FEB 07
FM AMEMBASSY NEW DELHI
TO RUCPDOC/USDOC WASHDC
RUEAHLC/HQ ICE IAO WASHINGTON DC
INFO RUEHC/SECSTATE WASHDC 2740

UNCLAS NEW DELHI 000597 
 
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: ELECTRICALS RESEARCH AND 
DEVELOPMENT ASSOCIATION, VADODARA, GUJARAT, LICENSE NO. D367587 
 
REF: USDOC 07040 
 
¶1. Unauthorized disclosure of the information provided below is 
prohibited by Section 12(c) of the Export Administration Act. 
 
¶2. Acting Export Control Officer (ECO) David Nardella and BIS FSN 
Prem Narayan conducted a Pre-license Check (PLC) at the Electrical 
Research and Development Association (ERDA), Vadodara, Gujarat, on 
February 2, 2007. 
 
¶3. BIS requested a PLC at ERDA, located at ERDA Road, G.I.D.C. 
Makarpura, Vadodara 390010, Gujarat, India, Tel: 91-265-3048010, 
Fax: 91-265-2638382, website: www.erda.org.  ERDA was listed as the 
Ultimate Consignee and NEC San-EI Instruments Ltd (NSEI), Tokyo, 
Japan as the Foreign Purchaser for one Model TH7800 thermal imager 
with variable lens controlled under ECCN 6A003.  The license 
applicant was Mikron Infrared, Inc. (Mikon), Oakland, NJ. 
 
¶4. ECO along with FSN Narayan met with A.K. Singh (Singh), Director; 
N.J. Buch (Buch), Deputy Director - High Voltage Products; Dr. G.S. 
Grewal (Grewal), Senior Manager and Head Materials Technology 
Division; Dr. Vagish Shrinet (Shrinet), Senior Manager, Technology 
Development & Commercialization Centre; Dr. M.K. Sharma (Sharma), 
Manager (Material Technology Division); S.K. Nayak, Head, Energy 
Management Section; and Joseph Thomas (Thomas), Chief Purchase 
Officer, ERDA. Prashant Agrawal (Agrawal), Under Secretary (AMS), 
facilitated the meeting.  Agrawal was also present at the meeting. 
 
¶5. ERDA officials were not aware of the BIS regulations.  This was 
the first USG or BIS official visit to ERDA.  They were cooperative 
and forthcoming.  Singh stated that Masibus Automation And 
Instrumentation (P) Ltd. (Masibus), an Indian firm, based in 
Gandhinagar, Gujarat, submitted quotation on behalf of NSEI for the 
thermal imager.  Thomas provided a copy of ERDA corporate brochure, 
Masibus quotation, correspondence between Masibus and ERDA 
concerning purchase of the thermal imager, ERDA Purchase Order in 
favor of NSEI, certificate of local distributorship issued by NSEI 
stating that Masibus is their authorized Indian distributor, and 
ERDA letter issued to NSEI in support of end-use of the thermal 
imager. 
 
¶6. Shrinet made a slide presentation on various activities that ERDA 
undertakes with regard to supporting Indian electrical industry 
including the end-use of the thermal imager.  He confirmed the 
stated end-use of the thermal imager.  He stated that the thermal 
imager would be used to conduct temperature measurement surveys for 
thermal power plants, chemical industries, transformer makers, etc. 
He stated that in the absence of the thermal imager, it is difficult 
to measure the temperature under live conditions by using 
conventional methods.  The thermal imager will enable ERDA personnel 
to measure/monitor temperature under live conditions by not touching 
anything and from a certain distance.  He stated that the 
temperature of insulating material in any power plant could be as 
high as 1,000 degree Celsius.  It is difficult to locate a bad 
conductor at the joint and blockages in the circulation. 
 
¶7. Shrinet cited an example that an ERDA designed industrial 
transformer developed a fault in a moving train due to bad heated 
point.  He stated that the thermal imaging camera they are 
attempting to purchase is a hand-held portable instrument.  They 
could have saved that costlier transformer by detecting the fault on 
the moving train by using the portable thermal imager.  To summarize 
the end-use of the thermal imager it will be used for thermography 
and to measure/monitor temperature of electrical devices for ERDA 
various customers.  Singh explaining that India has an "energy 
security" problem - a lot of electrical power is wasted due to 
inefficiency in the processes of making and using electrical power. 
The thermal imaging camera will greatly assist in early and precise 
identification of power being wasted in those processes.  The 
analogy Singh used was the early diagnosis of a disease; being able 
to diagnose wasted energy in an electrical system early will result 
in reduced effort in fixing or curing that energy waste. Singh 
stated that Materials Technology Division Head would be custodian of 
the thermal imager.  It will be kept in a lockable safe and a 
disposition log will be maintained when it will be taken out for 
use. 
 
¶8. He further stated that ERDA personnel would strictly operate it. 
It will not be given to any industry/individual for use on rental 
basis. ERDA officials were asked by ECO if the products were going 
to be used in any Nuclear Weapon, CBW, or Missile Applications.  ECO 
was advised no, and told them that such a use would be prohibited. 
ECO and FSN Narayan informed ERDA officials that if the license is 
approved and ERDA is able to import the equipment, they would be 
provided with certain export license conditions.  If ERDA is not 
 
 
provided the license conditions, they should ask the U.S. supplier 
to provide those.  Singh spoke firmly to all ERDA officials present 
there, and said, "Any Conditions which may be applied (by the USG), 
relating to this transaction, are to be followed in a sacrosanct 
manner". ECO asked Singh if ERDA intended to utilize the thermal 
imaging camera to perform work for any other countries, and if so, 
which countries would have access to the camera or benefit from its 
capabilities.  Singh answered that question by directly stating the 
thermal imaging camera would be used only in India and to benefit 
Indian companies.  The ERDA building is guarded 24 hours a day. 
 
¶9. Established in 1974, ERDA is an autonomous research and 
development organization.  It is accredited by the National 
Accreditation Board for Testing and Calibration Laboratories (NABL), 
Department of Science and Technology, GOI.  It was created by the 
Indian electrical industry and utilities with the support of 
Governments of India and Gujarat.  ERDA's core activities include 
product certification, type, developmental and special testing and 
evaluation as per national, international and institutional 
standards and specifications, sponsored research, technical services 
such as inspection, consultancy, condition monitoring, life 
assessment, failure investigation, knowledge updating and market 
surveys in the areas of electrical materials, products and systems. 
Through research and development, it provides scientific knowledge 
and technology needed to solve the problems.  It also conducts on 
line short circuit testing and high voltage impulse testing.  ERDA 
membership consists of 140 electrical instrument manufacturers.  It 
employs 220 personnel. 
 
¶10. Recommendation: Post recommends the Electrical Research and 
Development Association 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 Administration 
Regulations (DNARDELLA/PNARAYAN) Mulford