VZCZCXYZ0001
RR RUEHWEB

DE RUEHNE #0693/01 0431120
ZNR UUUUU ZZH
R 121120Z FEB 07
FM AMEMBASSY NEW DELHI
TO RUCPDOC/USDOC WASHDC
RUEAHLC/HQ ICE IAO WASHINGTON DC
INFO RUEHC/SECSTATE WASHDC 2908

UNCLAS NEW DELHI 000693 
 
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: POST-SHIPMENT VERIFICATION: GUJARAT ALKALIES 
AND CHEMICALS LTD., VADODARA, GUJARAT, LICENSE NO. D342594 
 
REF: USDOC 006735 
 
¶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 Post-shipment Verification (PSV) at Gujarat 
Alkalies and Chemicals Ltd. (GACL), P.O. Petrochemicals, Dist. 
Vadodara, Gujarat, on February 1, 2007. 
 
¶3. BIS requested a PSV at GACL, a Gujarat State Government Public 
Sector Undertaking (PSU), located at: P.O. Petrochemicals 391346, 
District Vadodara, Gujarat, Tel: 91-2641-256-315, Fax: 
91-2641-256-220, Email: ajpatel@gacl.co.in, Website: www.gacl.com. 
GACL was listed as the Ultimate Consignee and Blue Star Ltd. (BSL), 
Mumbai, as the Foreign Purchaser for two (2) Model 3196 spare nickel 
impellers controlled under ECCN 2B350.  The license applicant was 
Goulds Pumps, Inc. (Goulds), Seneca Falls, NY. 
 
¶4. ECO along with FSN Narayan met with A.N. Mandke, Chief General 
Manager (Dahej), A.J. Patel (Patel), Deputy General Manager (CPP), 
and Jayesh B. Dave, Assistant Officer (Marketing), GACL. 
 
¶5. GACL representatives were not aware of the BIS export 
regulations.  This was the first USG or BIS official visit to GACL. 
Patel stated that they purchased the two (2) nickel impellers from 
BLS to replace the impellers contained in the Goulds pumps purchased 
in 1996.  Those pumps are still operating at the GACL plant. (Note: 
reftel stated that there was one pump exported to GACL under EAR99, 
in 1996). Prior to shipment BSL provided BIS export license 
conditions to GACL by providing a copy of the export license. Patel 
provided a copy of the GACL corporate brochure, GACL Purchase Order 
to BSL, GACL End User Certificate, BSL Invoice, Receipt and 
Inspection Report, and two GACL vouchers reflecting issuance of 
two-nickel impellers. 
 
¶6. Patel stated that these two (2) nickel impellers have been 
installed in the previously purchased Goulds pumps, and are 
currently operating at GACL.  The pumps are used in the movement of 
caustic soda.  As explained by Patel, Caustic Soda is a foundational 
chemical that is sold by GACL to soap manufacturers, pharmaceutical 
companies, and other chemical manufacturers. 
 
¶7. Patel stated that last year GACL enhanced its production of 
caustic soda from 435 to 735 tons per day.  The new 10 inches 
impellers purchased replaced the old 5 inches impellers.  The bigger 
sized impellers were required to pump the increased production of 
caustic soda to its various manufacturing processes, and up to the 
storage tank.  Patel cited the reason for using the larger sized 
impellers was that with same amount of energy inputs they are now 
able to pump more liquids.  He stated that approximately 30 Goulds 
pumps are operating at the GACL plant for producing caustic soda lye 
and other chemicals.  To save on transporting costs, the caustic 
soda is converted into powder form and packed in gunny bags.  He 
stated they have license for selling 48 percent concentrate of 
caustic soda. 
 
¶8. After the meeting, ECO and FSN Narayan were given a tour of the 
GACL plant. ECO and Narayan were shown the two pumps into which the 
new impellers have been inserted.  In addition, ECO and Narayan were 
shown the two (2) 5 inch impellers that have been removed from those 
pumps.   To further cooperate with this check, Patel arranged for 
the temporary shutdown of one pump, and a team of GACL employees 
dismantled it.  This was done to allow for the personal inspection 
of an impeller.  ECO and Narayan performed a physical inspection of 
that impeller, and it was determined that it was one of the newly 
purchased 10 inch impellers.   Patel stated that the other pump, 
which was seen in operation a0proximately 5 feet from the dismantled 
one, contained the second recently purchased 10-inch impeller. 
Patel offered to provide any additional assistance to assist with 
the check, and ECO stated it was not necessary to further dismantle 
their facility, or further cease production. The GACL plant runs in 
three shifts is guarded 24 hours a day. 
 
¶9. Established in 1973, GACL is the single largest producer of 
caustic soda in India, with a production capacity of 820 tons per 
day.  It has two manufacturing locations at Vadodara and Dahej, both 
in Gujarat.  GACL's major products include caustic soda lye, caustic 
soda flakes, caustic soda prills, liquid chlorine, hydrochloric 
acid, sodium cyanide, sodium ferrocyanide, caustic potash lye, 
caustic potash flakes, potassium carbonate, poly aluminum chloride, 
and chlorinated paraffin wax.  The major customers are 
water-purifying companies, chemical, soap and pharmaceutical 
manufacturers.  GACL employs 1321 personnel.  GACL sales for the FY 
2006 were approximately $295 million. 
 
 
 
¶10. Recommendation: Post recommends Gujarat Alkalies and Chemicals 
Ltd. as a reliable recipient of the controlled U.S.-origin 
commodities.  All indications are that the listed commodities are 
being used in accordance with U.S. Export Administration 
Regulations. (DNARDELLA/PNARAYAN) Mulford