WASHINGTON, May 22: Dozens of Indian public sector and private sector firms are on a US administration watch list for their alleged role in enhancing India's missile programme. Bharat Dynamics, Bharat Heavy Plates and Vessels, Hindustan Machine Tools, Bharat Heavy Electrical Ltd, Godrej and Boyce, Walchandnagar, and Larsen and Toubro are just some of the companies being monitored by the Clinton administration for their role in missile proliferation.

The names are drawn from a list of 96 ``suspects'' monitored from a private think tank database subscribed to by the Department of Commerce and the CIA's non-proliferation unit.

Even some of India's academic institutions are not exempt from scrutiny. Indian Institute of Science, Bangalore and Indian Institute of Technology, Madras are also on the watch list.

The careful scrutiny is part of a tougher and more purposeful drill implemented by the Clinton administration to tighten up its Missile Technology Control Regime (MTCR).

As part of this exercise, the Department of Commerce last week named the Bangalore-based Bharat Electronics Ltd (BEL) in an Export Administration Regulation (EAR) ``Entity List,'' putting it on notice as a potential proliferator.

Sources said such a listing is not tantamount to actual sanctions, but US exporters will now have to apply for a licence for exports or reexports of all items subject to the EAR. These would typically mean high-end dual-technology use items.

``There won't be a problem exporting Coke machines to BEL. But a 900 MHZ oscilloscope? Now that's another question,'' said Gary Milhollin of the Wisconsin Project, a think tank whose database on nuclear and missile proliferation is accessed by US proliferation watchers.

The US has watchlisted BEL for its role in manufacturing electronics and avionics packages for ISRO's launch vehicles which also have missile applications.

BEL procurement lists were being cased by the several US government agencies like the Office of Export Licensing (OEL) and the Bureau of Export Administration (BEA) for months now ever since the Clinton administration tightened its export control procedures.

The scrutiny became acute after recent reports of laxity on part of US firms in selling cutting edge technology, including supercomputers, to countries like Russia and China. Some weeks back, in a similar exercise, the administration also placed Israel's Ben Gurion University on the same Entity List.

Although there was no sale or procurement of any particular component or part that triggered the action against BEL, administration sources said the action came about ``because we have sufficient proof now.''

Typically, this would have been determined by an extensive inter-agency scrutiny and review of BEL's buying orders, licences and invoices. The US customs service and foreign commercial service officers in American diplomatic posts abroad would also have been called in to check and verify any egregious violations.

US agencies have been monitoring Indian efforts to procure dual-use technology items like laser oscillators, electron spectometry, gyroscopes, propellants foraging steel etc.

Incidentally, BEL has had a long working relationship with US companies in frontier technology. For instance, the Indian firm is making the digital flight control computer for the LCA with components from Lockheed Martin. Sources in the scientific establishment maintained however the sanctions would not hurt the LCA project since cooperation was assured under a 1988 MOU.

Ironically, it was BEL's long term presence in the US and the transparency of its operation that appears to have made it a scapegoat for the partial sanctions, sources on the Indian side claimed. BEL has had a New York office since the late 70s and it has been regularly procuring components like resistance capacitors and IC connectors from American companies.

``Our orders and buying methods have been very transparent and above board. We have done nothing illegal and are shocked by the action,'' BEL sources said.

They better not be. For one, this is not an India-specific witch-hunt. American proliferation watchers expect other companies, including some Chinese entities, to be named soon. ``This is a big government machine that has begun clanking and spat out two names so far. I think there are others in the pipeline,'' says Millhollin.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.