Published On : Wed, Jul 1st, 2026
By Nagpur Today Nagpur News

SBL Energy denies wrongdoing, says Sudan exports were fully approved under Indian regulations

Company says all shipments were cleared by Indian authorities and meant solely for civilian use; to seek removal from OFAC sanctions list
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Nagpur: Nagpur-based SBL Energy Ltd. has defended its exports of industrial explosives to Sudan, asserting that all shipments were carried out in full compliance with Indian and international regulatory requirements. The company maintained that the allegations against it stem from developments beyond its control and announced that it has engaged legal counsel to seek removal from the sanctions list of the United States Office of Foreign Assets Control (OFAC).

In an official media statement issued on Wednesday, SBL Energy said it is a licensed manufacturer and exporter of regulated industrial explosives and related accessories used in mining, quarrying and infrastructure projects, with exports to more than 18 countries under a stringent compliance framework.

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The company said the controversy relates to exports made to Target Multi Activities Co. Ltd. (TMAC) in Sudan. According to SBL Energy, TMAC was not a sanctioned entity at the time of the transactions and remained free of sanctions until June 26, 2026, when both TMAC and SBL Energy were simultaneously designated by OFAC.

“The present situation is unfortunate,” the company said, adding that the sanctions arose despite the transactions having been undertaken through what it described as a legitimate and government-approved commercial relationship.

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Explaining the regulatory framework governing its operations, SBL Energy said the manufacture and export of industrial explosives is among the most tightly regulated industries in India.

The company stated that every stage of the process, from manufacturing to export, is governed by multiple statutory approvals and licensing requirements. It operates under licences issued by the Petroleum and Explosives Safety Organisation (PESO) and said its manufacturing facilities comply with all conditions prescribed by the statutory regulator.

For exports, the company said separate licences are required from the Directorate General of Foreign Trade (DGFT), along with clearances from the Ministry of External Affairs (MEA). According to SBL Energy, these approvals ensure that the Government of India is fully aware of and authorises every export destination and overseas buyer before any consignment is shipped.

The company further stated that imports into Sudan were also governed by the recipient country’s regulatory framework, requiring import permits issued by Sudanese authorities and scrutiny by the Embassy of India in Sudan.

“This dual-country regulatory mechanism leaves virtually no scope for unilateral commercial decisions,” the company said, adding that all prescribed procedures were followed in respect of its exports to Sudan.

Claims products intended only for civilian use

SBL Energy maintained that its products were supplied strictly for civilian industrial applications and not for defence or military purposes.

According to the company, before undertaking exports to Sudan, it obtained detailed declarations and end-use certificates from the buyer confirming that the explosives would be used exclusively for civilian activities such as mining and infrastructure projects.

It also said the related import permits were reviewed by Sudanese authorities and the Indian Embassy before export licences were granted by PESO.

The company asserted that, to the best of its knowledge, none of its products were diverted for military use, and any such use would be contrary to its contractual terms and intended end-use conditions.

Company to cooperate with US authorities

SBL Energy said it has appointed legal counsel and intends to cooperate fully with OFAC to demonstrate its compliance and seek removal from the sanctions list at the earliest.

The company argued that its designation does not indicate deliberate wrongdoing but is the result of allegations arising from the conduct of a third party over whom it had no operational oversight or control.

About the company

Established in 2002, SBL Energy described itself as a long-standing Government-licensed manufacturer of industrial explosives serving key sectors such as coal, power, steel, cement and large-scale infrastructure projects.

The company stated that it has maintained an unblemished compliance record for more than two decades and has contributed significantly to India’s mining and infrastructure sectors, which it said are integral to the country’s Aatmanirbhar Bharat initiative and broader economic development.

The statement comes amid heightened scrutiny following the recent sanctions, with the company reiterating that it remains committed to regulatory compliance and lawful international trade.

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