Identifier
Created
Classification
Origin
07NEWDELHI3244
2007-07-16 09:40:00
UNCLASSIFIED
Embassy New Delhi
Cable title:  

EXTRANCHECK: PRE-LICENSE CHECK: GRAPHITE INDIA LTD.,

Tags:  ETTC ETRD BEXP IN 
pdf how-to read a cable
VZCZCXYZ0018
RR RUEHWEB

DE RUEHNE #3244/01 1970940
ZNR UUUUU ZZH
R 160940Z JUL 07
FM AMEMBASSY NEW DELHI
TO RUCPDOC/USDOC WASHDC
RUEAHLC/HQ ICE IAO WASHINGTON DC
INFO RUEHC/SECSTATE WASHDC 6916
UNCLAS NEW DELHI 003244 

SIPDIS

SIPDIS

USDOC FOR 532/OEA/M. NICKSON-D/L. LAUCIUS/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: GRAPHITE INDIA LTD.,
BANGALORE, LICENSE D377329

REF: USDOC 05519

UNCLAS NEW DELHI 003244

SIPDIS

SIPDIS

USDOC FOR 532/OEA/M. NICKSON-D/L. LAUCIUS/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: GRAPHITE INDIA LTD.,
BANGALORE, LICENSE D377329

REF: USDOC 05519


1. Unauthorized disclosure of the information provided below is
prohibited by Section 12(c) of the Export Administration Act.


2. Export Control Officer (ECO) Paul Cushman and BIS FSN Prem
Narayan conducted a Pre-license Check (PLC) at Graphite India Ltd.
(GIL),Bangalore, on June 26, 2007.


3. BIS requested a PLC at GIL, a private sector company, located at:
Graphite India Ltd., Visvesvaraya Industrial Area, Whitefield Road,
Bangalore, 560048, Tel: 91-80-2852-4061, Fax: 91-80-2852-4072,
email: blrvpw@graphiteindia.com, website: www.graphiteindia.com. GIL
was listed as the ultimate consignee for hot isostatic press (HIP)
controlled under ECCN 2B352. The license applicant was Engineered
Pressure Systems Inc. (EPSI),Haverhill, MA.


4. ECO along with FSN Narayan met with Ulhas D. Wadivkar (Wadivkar),
Vice President-Works and Dr. R. Raghunand (Reghunand),Senior
Manager - R&D, GIL.


5. GIL representatives were not aware of the BIS regulations. This
was the first visit by BIS or USG officials to GIL. GIL
representatives provided a copy of GIL Purchase Inquiry, GIL
End-User Statement and email correspondence between GIL and EPSI
concerning the proposed transaction.


6. Wadivkar stated that GIL plans to erect a new plant within the
GIL Bangalore facility to manufacture graphite brake discs for new
Indian Light Combat Aircraft (LCA) and the HIP on order will be
housed within this plant. The estimated cost for the new plant will
be approximately 25 million USD. ECO inquired why GIL initiated the
purchase process before beginning construction of the new plant.
Wadivkar explained that a HIP is a custom-made product and requires
9-18 months to produce and deliver.


7. Wadivkar stated that GIL and Advanced System Laboratory, a
Defence Research Development Organization (DRDO) agency, are jointly
developing the graphite brake discs for the LCA. GIL and
Aeronautical Development Agency (ADA),Bangalore (another DRDO
establishment) have agreed that GIL will manufacture the LCA brake
discs at ADA specifications. He stated that a preliminary MOU

between GIL and ADA designates GIL as the exclusive
producer/supplier of brake discs for the LCA. GIL did not share a
copy of this document with BIS.


8. GIL representatives arranged a meeting for the BIS Team with
ADA's Project Director for Propulsion & General Systems K.G. Vivek
(Vivek) who will serve as project manager for ADA. The meeting was
held at the ADA Conference Room. Vivek stated that ADA's major
activities include design and analysis, testing and qualification,
avionics and flight control, simulation, weapon systems,
flight-testing, LCA production, and software development. Hindustan
Aeronautics Ltd. (HAL) produces the LCA based upon ADA designs. He
also stated that the engines for the LCA are being sourced from
General Electric. HAL has already produced twenty LCAs and five of
them (prototype models) are operational. He further stated that ADA
conducts approximately 38 LCA test flights per week. To date, ADA
has conducted 690 test flight of the LCA (TEJAS model). The LCA is
scheduled to enter service with the Indian Air Force in 2010.


9. Vivek stated that the brake discs currently installed on the LCA
are heavier and have a poor wear rate. The graphite brake discs
that will be manufactured by GIL using the HIP will be much lighter
and will have a substantially improved wear rate (approximately 300
landings). Vivek stated that graphite is preferred over other
materials because of its light weight, thermal shock resistance,
high thermal conductivity, low thermal expansion and good chemical
resistance.


10. Although the HIP will be used at the GIL facility, ECO advised
Vivek that ADA should also submit an end-use statement to EPSI
describing the intended use of the brake discs sourced from GIL.


11. On July 6, 2007, BIS New Delhi received a copy of the end-use
statement ADA submitted to EPSI. The following text is quoted from
it: "ADA, Bangalore, is responsible for design and development of
LCAs for Indian Airforce. LCA (Tejas) utilizes carbon-carbon
composite brake discs as braking element in brake assembly. The
carbon-carbon brake discs for LCA are being productionized by GIL,
Bangalore, who have set up the facilities for fabrication of C-C
brake discs at Bangalore. HIP which is necessary for enhancing the
productivity and quality of C/C discs, is required to be established
by GIL. The C/C brake discs made by GIL, Bangalore, are exclusive
for LCA application and does not have any missile/nuclear/biological


warfare application".


12. Wadivkar confirmed the stated end-use of the HIP. Currently,
GIL produces the carbon graphite brake discs using an indigenous
system. Petroleum coke is used as the raw material for making the
carbon. It then goes through various manufacturing processes
including high pressure at elevated temperatures and finally, it is
graphitized. The end product is thicker in size but through
graphitization it is reduced to 200 mm in size. One carbon graphite
disc is comprised of seven carbon discs.


13. He stated that the existing system enables them to complete only
8-10 production cycles per annum. The manufacturing process is
lengthy and cumbersome. Using the HIP will greatly reduce the
manufacturing time because the manufacturing processes will not
require repetition. Using the HIP, GIL will be able to complete
75-80 production cycles per annum. The HIP is designed to apply
accurate pressure uniformly at elevated temperatures and is ideal
for the casting, ceramics, plastics, automotive, and aerospace
industries. The HIP system densifies materials to correct casting
defects and voids, bond similar or dissimilar materials and to form
net or near-net shapes from metal, ceramic, cement and graphic
powders.


14. The BIS Team was given a tour of the existing brake disc
manufacturing facility. Wadivkar explained the current brake disc
manufacturing process and how the HIP will assist their operation in
producing far superior brake discs. The GIL factory is enclosed and
guarded 24/7.


15. Established in 1963, GIL is one of the largest manufacturers of
graphite electrodes in India. It has four manufacturing locations
in India including Durgapur, West Bengal; Bangalore, Karnataka;
Nashik, Maharashtra; and Barauni, Bihar. In addition, GIL has a
plant in Germany that caters to the European market. The graphite
products that GIL manufactures include graphite electrodes, calcined
petroleum coke, carbon paste, glass fiber-reinforced plastic pipes
and tanks, and other customized specialty products. In addition, it
manufactures impervious graphite equipment which includes chemical
equipment and graphite heat exchangers, sulphuric acid dilution
cooling units, thermometer pockets, pipe valves and fittings, dry
HCI gas generation units, centrifugal pumps, HCI synthesis units,
HCI absorption system, bursting disc and ejector systems.


16. The Bangalore plant produces specialty graphite products. GIL
India produces approximately 70,000 tons of graphite electrodes per
annum. Of that 70,000 tons, approximately 7,000 tons of graphite
electrodes are produced by the GIL Bangalore plant. In addition,
the GIL Bangalore plant also produces approximately 3,000 tons of
specialty graphite products. GIL's major customers are from the
metallurgical (ferrous and nonferrous),chemical, aerospace and
nuclear industries. GIL exports 75 percent of its total production
to approximately 150 customers in 50 countries. GIL employs
approximately 3,000 personnel including 400 in the Bangalore plant.
GIL's sales turnover for FY 2006 was approximately 210 million USD.


17. Recommendation: Post recommends Graphite India 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 Control Regulations. (PSCUSHMAN/PNARAYAN) Pyatt