EXTRANCHECK: PRE-LICENSE CHECK: BHARAT HEAVY ELECTRICALS

UNCLAS NEW DELHI 001688 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: BHARAT HEAVY ELECTRICALS LIMITED, BANGALORE, LICENSE NO. D396795 REF: USDOC 03358 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12(c) of the Export Administration Act. ¶2. On June 17, 2008, Export Control Officer (ECO) Paul Cushman and BIS FSN Shailendra Srivastava conducted a Pre-License Check (PLC) at Bharat Heavy Electricals Limited (BHEL),Research & Development Unit in Bangalore. ¶3. BIS requested a PLC at BHEL, a Government of India enterprise, located on Mysore Road in Bangalore. BHEL is listed as the ultimate consignee for five AC power sources with arbitrary waveform generators controlled under ECCN 3A225. The license applicant is Xantrex Technology of San Diego, California. ¶4. ECO and FSN Srivastava met with Mr. K.C. Ramamurthy, General Manager, Mr. R.R. Kasturi, Additional General Manager, Mr. Arvind Tiwari, Senior Deputy General Manager and Mr. T. R. Surya Prakash, Deputy Manager, BHEL. Mr. Randhir Jaiswal, Deputy Secretary, Ministry of External Affairs, arranged and was present at the meeting. ¶5. The meeting was held at the BHEL facility. Mr. Kasturi stated that he did not recall any previous visits by BIS officials but he was aware of BIS regulations. Kasturi provided copies of the BHEL Purchase Order, a Non-Nuclear Declaration, and the End-Use Statement. ¶6. Mr. Tiwari explained that the technology on order will be used for testing power plant control systems manufactured by BHEL. Specifically, the AC power sources with arbitrary waveform generators will simulate all manner of energy flow variations and disruptions commonly encountered by power plants as they generate electricity and then introduce that power into the electrical grid. ¶7. After the meeting, the BIS team was given a tour of the BHEL facility and shown the various workshops where the devices will be employed. Security for the facility is provided 24/365 by the GOI's Central Industrial Security Force (CISF). ¶8. Bharat Heavy Electricals Limited, headquartered in New Delhi, is one of India's largest public sector undertakings. Established in 1976, BHEL is the indigenous leader in manufacturing all types of equipment used in power generation plants. ¶9. Recommendation: Bharat Heavy Electricals Limited appears to be a suitable recipient of this controlled technology. BHEL cooperated fully with the BIS team, has a demonstrated need for the technology, and understands its responsibilities with respect to the Export Administration Regulations. MULFORD