India tightens rules to curb sub-standard steel imports

The Centre has barred substandard steel imports, citing their impact on domestic producers. Traders were found altering steel grades to bypass BIS standards, with many shipments lacking required approvals.

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The Centre has flagged cases of substandard steel imports and prohibited their entry into the country. A statement from the Steel Ministry highlighted that cheaper imports depress domestic steel prices, adversely affecting both large and small steel producers.

According to the ministry, numerous traders and manufacturers are attempting to bypass Bureau of Indian Standards (BIS) requirements by making minor alterations in steel grades. “It has been observed that many traders and manufacturers have been trying to import steel with minor alternations in steel grades to bypass BIS standard requirement,” the statement noted. This practice seemingly aims to import cheaper steel under the guise of different grades.

The BIS has outlined 151 standards covering 1,376 steel grades under the Steel Ministry’s Quality Control Orders (QCO). “This ensures that the steel produced domestically or imported from outside conforms to BIS standards,” the ministry stated, emphasizing the curbs placed on low-quality steel. Steel imports must either comply with BIS standards or obtain a BIS license. Steel grades not covered by BIS can only be imported with a No Objection Certificate (NOC) from the Steel Ministry.

The ministry has raised concerns about misuse of this provision, with many shipments lacking the necessary NOC. Official data shows 1,136 import applications for steel grades that are neither internationally recognized nor covered under BIS standards. These grades reportedly have minor variations in chemical composition or measurements, appearing to be efforts to bring in cheap steel under different classifications.

Responding to concerns about Japanese steel imports, the ministry clarified, “As far as applications for import of steel from Japan is concerned…735 applications were received, out of which 594 have been allowed. Only in 141 cases NOC have not been granted as the applications were not as per norms.”

In the first half of this fiscal, India imported 4.735 million tonnes of steel, marking a 41.3% rise from the same period last year.