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