US blacklist likely to hit GSFC projects

VADODARA, NOV 20: Industrial giant Gujarat State Fertilisers and Chemicals Limited is likely to suffer in the international market following...

VADODARA, NOV 20: Industrial giant Gujarat State Fertilisers and Chemicals Limited is likely to suffer in the international market following the blacklisting of 40 Indian entities and 200 subsidiaries by the US.

The GSFC, which had availed of a 25 million loan in 1991-92, and Heavy Water Project are the two Vadodara-based companies to be included in the blacklist. GSFC has been targeted for supplying ammonia and raw material to the HWP for the manufacture of heavy water.

GSFC chairman K D Jeswani told The Indian Express on Wednesday that though the implications could not be interpreted at an individual level, the sanctions would have an international effect. 8220;The company8217;s future projects with the US could be in trouble because of this8221;, he said.

8220;Everything will depend on the attitude of the Government of India,8221; Jeswani said, adding that a meeting of Fertilisers8217; Association of India would be held in New Delhi on Thursday to discuss the matter. Various issues pertaining to the sanctionsare to be discussed in the meeting where representatives of the Defence Ministry are likely to be present.

According to Jeswani, another area likely to suffer was that of technology tie-ups. Though there were no US-funded or sponsored project or technology tie-ups in the pipeline, it was too early to predict the impact of the sanctions, the chairman said, adding that it would all depend upon how long it continues.

A highly placed GSFC officer said it was being studied whether the exports to G-7 countries would also be affected. GSFC, which has an annual turnover of Rs 2,000 crore, exports caproluctum and MEK Oxine worth approximately 10 million to Germany and France.

HWP General Manager S M Jain, however, said the blacklisting would not have any impact on the plant as it had developed indigenous technology and did not import any parts from the US. 8220;We are not dependent on the US8221;, he said, adding that they were manufacturing surplus heavy water, a basic material used in atomic reactors.

Story continues below this ad

He,however, refused to give details about the quantum of production, maintaining that information could not be divulged as the plant was under the Defence Ministry.

Jain said they had not received any official information about the blacklisting from either the Indian or the US Government. 8220;We have only read about it in the newspapers,8221; he added.