EXTRANCHECK: PRE-LICENSE CHECK: ORDNANCE FACTORY DEHRADUN,

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