Govt to Suspend Quality Control Orders for 55 Steel Grades to Ease Industry Sourcing

The Steel Ministry is considering halting quality control orders (QCOs) for 55 steel grades, easing raw material sourcing for industry players. This suspension, based on a high-level committee's advice, involves 42 standards for three years and 13 for one year. An official notification is anticipated soon, possibly next week, with an annual review of the suspension's impact.

Sources indicate that the ministry will suspend only 55 QCOs despite several recommendations from the committee. Additionally, 15 other standards will be referred to an inter-ministerial group (IMG) for further evaluation on their potential suspension. This move aims to facilitate the import of specified steel grades from non-licensed suppliers or allow the use of non-BIS-compliant steel in manufacturing within India.

Impact on Industry and Standards

The suspension primarily affects sectors like automobiles and electrical equipment. However, certain standards related to defence and atomic energy will remain intact. The ministry has issued over 151 QCOs in recent years to prevent non-compliant steel products from entering the Indian market. A QCO issued in June restricted importing inputs for specific steel products.

A high-level NITI Aayog committee recently met with industry leaders and stakeholders to evaluate the import situation. The committee suggested suspending some QCOs to ensure availability of metal grades not produced domestically or whose production doesn't meet demand. This recommendation aims to address supply shortages and support industry needs.

Future Steps and Considerations

The ministry's decision to suspend these QCOs reflects a strategic approach to balance domestic production capabilities with industry requirements. By allowing imports of non-BIS-compliant steel, the ministry seeks to alleviate supply constraints faced by various sectors. The annual review will help assess the policy's effectiveness and make necessary adjustments.

While easing restrictions on certain grades, the ministry remains committed to maintaining standards crucial for national security and critical infrastructure. This balanced approach ensures that essential sectors continue receiving high-quality materials while addressing broader industry challenges.

The upcoming notification will provide clarity on which standards are suspended and outline guidelines for importing or using non-compliant steel. Industry players are advised to stay informed about these changes and adjust their sourcing strategies accordingly.

With inputs from PTI