India’s dispute spills over into the boardroom of the Canadian potash company Karnalyte

By Jacob Lorinc

Even for some of the smallest Canadian companies with ties to India, day-to-day operations have been complicated by an intensifying diplomatic feud between the two countries.

Karnalyte Resources Inc. abruptly canceled plans to meet with its Indian board members as the governments of Canada and India disputed the killing of a Sikh leader on Canadian soil. The Saskatchewan-based potash company counts two Indian executives and an Indian banker among its board members.

“We prepared to welcome our fellow directors from India for a visit to Canada this week, but they canceled their trip due to the tensions that emerged last week and quickly escalated,” said Danielle Favreau, Interim Chief Executive Officer of Karnalyte, in an email. “We hope to be able to reschedule your visit soon.”

Karnalyte plans to build a potash mine in western Canada and includes Gujarat State Fertilizers & Chemicals Ltd. – one of India’s largest fertilizer and industrial chemicals manufacturers – as its largest shareholder. When the mine begins production, the majority of its output will go to the state-owned Indian company.

Karnalyte’s chairman is Vishvesh Nanavaty, who is also chief financial officer of Gujarat State Fertilizer, while director Dilip Pathakjee works as senior vice president for the Indian company, the Canadian company’s website said. Another Karnalyte board member, DC Anjaria, is from India and has international banking experience.

Since Canadian Prime Minister Justin Trudeau earlier this month accused the Indian government of orchestrating the assassination of Hardeep Singh Nijjar, a Canadian activist advocating for an independent Sikh homeland in the Punjab region, India has closed visa applications for Canadians who want to travel to the country are suspended. Meanwhile, Canadian companies, including AtkinsRéalis, formerly SNC-Lavalin Group Inc., have restricted travel to India for Canadian employees.