VZCZCXYZ0000
RR RUEHWEB

DE RUEHNE #0692/01 0431119
ZNR UUUUU ZZH
R 121119Z FEB 07
FM AMEMBASSY NEW DELHI
TO RUCPDOC/USDOC WASHDC
RUEAHLC/HQ ICE IAO WASHINGTON DC
INFO RUEHC/SECSTATE WASHDC 2906

UNCLAS NEW DELHI 000692 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR 532/OEA/M. NICKSON-D/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: BIHAR CAUSTIC & CHEMICALS 
LTD., REHLA, PALAMAU, JHARKHAND, LICENSE NO. D369258 
 
REF: USDOC 00499 
 
¶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 Bihar Caustic & 
Chemicals Limited (BCCL), Jharkhand, on February 9, 2007. 
 
¶3. BIS requested a PLC at BCCL, a private sector company located at: 
Rehla, Palamau, Jharkhand 822124, Tel: 91-6584-26221, Fax: 
91-6584-262205, Email: jnprasad@adityabirla.com. Website: 
www.adityabirla.com.  BCCL was listed as the Ultimate Consignee and 
Blue Star Ltd. (BSL), Mumbai, as the Foreign Purchaser for one Model 
3196 nickel construction NaOH centrifugal pump controlled under ECCN 
2B350.  The license applicant was Goulds Pumps, Inc. (Goulds), 
Seneca Falls, NY. 
 
¶4. ECO along with FSN Narayan met with R.K. Sinha (Sinha), General 
Manager (Operation), J.N. Prasad (Prasad), Deputy General Manager 
(Materials), Pankaj Thakur (Thakur), Deputy Manager (Materials), and 
S.K. Chakraborty (Chakraborty), Deputy Manager (Maintenance), BCCL. 
 
¶5. BCCL representatives were not previously aware of the BIS export 
regulations.  This was the first USG or BIS official visit to BCCL. 
Prasad stated that BCCL dealt with BSL for this transaction.  He 
provided a copy of the BCCL Purchase Order.  Chakraborty recalled 
that BCCL submitted an End-Use Statement for the pump on order but 
that was untraceable in their files. He promised that he would send 
it later. 
 
¶6. Sinha stated that in 2006 they converted their plant from mercury 
cell technology to membrane cell technology.  He stated that mercury 
cell technology became obsolete and is hazardous to atmosphere. 
Most plants using mercury cell technology are being shut down 
worldwide.  The membrane cell technology is environment friendly. 
 
¶7. Sinha stated that they have been using similar Goulds centrifugal 
pumps of different parameters and capacities.  He confirmed the 
stated end-use of the centrifugal pump it will be used to circulate 
caustic soda.  Four centrifugal pumps are attached with several 
electrolysers to circulate caustic soda into various manufacturing 
processes for making the end product.  They have license to produce 
48 percent of concentration of the caustic soda.  Initially they 
produce the caustic soda at 32-33 percent of concentration and 
through an evaporation process, they make it up to 48 percent 
concentration. 
 
¶8.  There are two Goulds pumps operational at BCCL's Caustic 
Evaporation Unit that are equipped with to handle high temperatures. 
 Movement of Caustic Soda at higher than 85 degree Celsius, requires 
a nickel construction pump. The pump on order will be for stand by 
for any repair or breakdown in these two pumps.  Sinha stated that 
nickel construction pumps are not available locally.  He stated 
these are sophisticated pumps and have long life span.  To prevent 
leakages of liquids and to save on maintenance costs they prefer to 
use nickel construction pumps.  They are fully equipped with 
high-pressure flow and to handle high temperature conditions.  BCCL 
needs this standby pump due to the plants 24 hours operation. 
 
¶9. The 80-85 percent of the caustic soda is produced for BCCL's 
sister concern Hindalco Industries Ltd. based in Renukoot, Uttar 
Pradesh.  The remaining 15-20 percent is sold to soap, paper and 
chemical manufacturers. 
 
¶10. After the meeting, ECO and Narayan were given a tour of the BCCL 
plant.  They were shown the actual site where the stand-by 
centrifugal pump will be housed.  They were also shown the lockable 
shed where it will be stored until needed.  ECO asked Chakraborty if 
BCCL would consider selling the Goulds pump on order?  To that 
question, he said no, it is required for producing the caustic soda 
at the BCCL plant.  It will not be used to support any Nuclear, 
Weapon, CBW, or Missile Applications. 
 
¶11. Established in 1984, BCCL is one of the companies of the Aditya 
Birla Group of Companies (ABG).  ABG is one of the largest business 
houses in India having business interests in various metals, cement, 
automobile tires, textiles, fertilizers, chemicals, mining, 
insulators, palm oil, software development, telecommunications, 
finance, insurance and retailing stores. ABG has manufacturing 
facilities in approximately 15 countries and employs approximately 
82,000 employees.  BCCL manufactures caustic soda lye, liquid 
chlorine, hydrochloric acid, sodium hypochlorite and hydrogen.  It 
produces the caustic soda approximately 225 tons per day.  BCCL's 
customers include soap, paper, chemicals and aluminum manufacturers. 
 
 BCCL's sales turnover for FY 2006 was approximately $34 million. 
It employs 300 personnel. 
 
¶12. BCCL employees advised that that they received a Goulds pump, 
with nickel impeller, in December of 2006.  This pump was in 
operation and viewed by the ECO and Narayan.  That pump was a Goulds 
3196 MTX, with serial number 726246.  Chakraborty advised that the 
MTX is a smaller model then the STX which is the subject of this 
PLC. 
 
¶13. Recommendation: Post recommends Bihar Caustic & Chemicals Ltd. 
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