In April, around the same time Home Secretary Madhukar Gupta wrote his advisory on “free diversion” of explosives and ammonium nitrate, Anbunathan sent a note to all explosive manufacturers informing them that the chemical constituted approximately 70% of all slurry and emulsion explosives and that “given the background of misuse of the ammonium nitrate by terrorists/anti-social elements, it has become imperative to monitor its manufacture, movement and use.”

So the Chief Controller asked for daily computerised records of purchase and use of ammonium nitrate and said that a high-powered team (read Intelligence Bureau) would visit manufacturing units for inspection.

Another letter was written by the Chief Controller to all state Chief Secretaries in July 2006 in which Anbunathan admitted, “pilferage of explosives from licensed magazines has been causing great concern especially in the wake of reports that these pilfered explosives sometimes land in the hands of anti-national and terrorist elements as well as Naxalites.”

He also informed the Chief Secretaries that in several cases, mines and quarries do not hold licenses in their names but entrusted the quarrying/mining activity to blasting contractors. “Thus the quarry owner is nowhere responsible and accountable for transaction of explosives... the present scenario of the country in the wake of bomb blasts and Naxal activity warrants close monitoring of movements and use of explosives,” he warned.

On the ground, PESO’s inspection reports revealed other disturbing trends. Some inspections showed (for instance, in Asansol and East Jharia) an easy swap of licensed magazines was being done from one manufacturer to another, resulting in several licenses being cancelled.

... contd.