The Indian automobile industry has urged India’s steel ministry to lift restrictions on steel imports as they could potentially disrupt automobile production in the country, industry officials said on Friday, December 13, citing representations made to the government by two industry representative bodies, on Friday, December 13.
The Automotive Components Manufacturers’ Association (ACMA) said that the government has clamped down "very heavily" on steel imports following a sudden surge.
"The fact remains that the import of automotive steel is a very small proportion, just about five percent, of the overall import that happens. The imports are just in kilos, they don't even go into tons and quintals in some of the grades of steel. Because the government intends localisation, there have been a slew of QCOs (quality control orders), which ACMA has welcomed,” ACMA director general Vinnie Mehta said in a statement.
According to the current process, the importer now needs an NOC (no objection certificate) from the government by justifying the need for import of a steel grade, which falls under one of the QCOs.
“Unfortunately, at this juncture, the NOCs are not coming by. Both - ACMA and the Society of Indian Automobile Manufacturers (SIAM) - have made representations to the Ministry of Steel and Ministry of Heavy Industries.”
“We are hopeful because both the ministries are headed by the same minister. He will also be able to see the challenge being faced by the automotive industry because in some cases the inventory levels have run so low that they may have to stop production. It is definitely a challenge that needs to be addressed," Mehta said.
"ACMA and SIAM believe that localisation is the way forward. Import is not in the interest of anyone but, in certain cases, the technologies are so specialised and the amount is just a few kilos, so the localisation is not justified. We have written a letter. We have a common minister. We have a fair chance of being heard. We are keeping our fingers crossed," he said.