Nagpur: The US imposed sanctions on a Nagpur explosives manufacturer, SBL Energy Ltd, last week for sending shipments to Sudan, but it all began with an email from Target Multi Activities Company (TMAC) in 2022 that sought to replace its existing Indian supplier over quality issues and contacted SBL for a tie-up.“Soon a deal was struck and SBL began sending supplies to TMAC unaware of what lay ahead. The terms were favourable as we offered competitive rates and continued supplying cartridges that can crack rocks, not trigger bombs,” said a promoter of the company to TOI. The explosives were made at the company’s Nagpur unit. SBL has manufacturing facilities at Raipur and Raigargh in Chhattisgarh too.“When the first consignment was sent in 2022, the company found there were no sanctions against TMAC. OFAC’s executive order came in 2023, but SBL was confused whether it covered TMAC and continued supplies till December-January,” the promoter said. The order against TMAC came last week which also covers SBL.Sudan had been relying on Indian suppliers for mining explosives even before it struck a deal with SBL and was mulling a tie-up with another Indian supplier. As per policy, TMAC wanted to line up two different sources from India so that supplies are assured.Since information on explosive suppliers is available on the internet, TMAC was able to contact SBL. “We were told explosives were used for gold mining, which is a major activity in Sudan,” said the official.SBL is now preparing a draft appeal against the order by the US Treasury Department Office of Foreign Assets Control (OFAC). However, it may take nine months to a year for the sanctions to be lifted. Till then, exports will come to a standstill as sanctions block payments in dollars. With dollar payments blocked, the company cannot even import, the source said.Exports continued with clearances from Indian authorities and an end-user certificate from TMAC. Now, SBL is planning to focus on the domestic market to stay afloat, the source said.
