BIS to issue compliance certificates to Chinese steelmakers

The Bureau of Indian Standards (BIS) is set to issue compliance certificates to three Chinese steelmakers for cold rolled grain oriented (CRGO) steel, responding to a domestic shortage of this specialized material. CRGO steel, used in aerospace, automotive, and energy sectors, is only 7% produced locally in India, with demand around 300,000 tonnes. The certification follows a policy requiring Union steel ministry approval for non-pre-certified steel imports, with government inspections ensuring quality at Indian ports. This move comes amid concerns over Chinese steel dumping in the Indian market.

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The Bureau of Indian Standards (BIS) is expected to soon grant compliance certificates to Chinese steelmakers, marking the first time since quality norms were introduced for the sector in 2023-24 and further tightened this financial year. Three Chinese companies are set to receive certification for cold rolled grain oriented (CRGO) steel, which has been in short supply, a situation that Indian transformer manufacturers have raised concerns about.

In October 2023, the government made it mandatory for the Union steel ministry to approve imports that have not been pre-certified by BIS. According to the current policy, BIS certification is granted to foreign steel mills that meet the requirements. Once an importer receives a shipment from a BIS-certified manufacturer, government officials inspect the goods at Indian ports before they can be sold domestically.

CRGO steel is crucial in industries such as aerospace, automotive, and energy, but India’s domestic production of this specialized steel covers only about 7% of local demand.

Industry sources indicated that the three Chinese manufacturers have a combined capacity of over 1.7 million tonnes, while India’s demand for this high-value steel is around 300,000 tonnes. This certification comes at a time when domestic players have raised concerns about the dumping of Chinese steel in the Indian market.