The ministry of steel has found several instances of poor quality steel imports and has barred entry of these consignments as such imports lead to the depression of domestic steel prices and affect steel producers, both small and large, the ministry said in a statement on Thursday, November 28.
According to the ministry, many traders and manufacturers have been trying to import steel with minor alternations in steel grades to bypass Bureau of Indian Standard (BIS) requirements and these seem to be an attempt to import cheap steel in the name of different grades.
BIS has notified 151 standards covering 1,376 steel grades that are covered by the ministry’s quality control order (QCO).
“This ensures that the steel produced domestically or imported from outside conforms to BIS standards,” the statement said, while adding that this move puts curbs on low-quality steel.
Meanwhile, in a related development the embassy of Japan in India has raised concerns with two central ministries - the ministry of steel and the ministry of commerce and industry - stating that Japanese steel consignments are being held up at Indian ports by customs officials due to the absence of a No Objection Certificate (NOC).
“I understand that normally, the NOC is granted following Quality Control (QC) Committee meetings, which are typically held twice a month at your ministry. However, since September 2024, these meetings have been suspended, and the NOCs have not been issued,” the embassy said in the communication.
Japanese companies are incurring “huge detention charges” as shipments remain stuck at ports, disrupting commercial activities. Despite repeated communications to the ministry, no progress has been made, and, without action, steel imports from Japan to India will remain suspended, it said.
For steel grades not covered by BIS standards, the ministry of steel requires an NOC to be issued for imports.
However, according to the ministry, a significant number of these applications have been found to be non-compliant with the prescribed norms. As of October 31, 2024, there were 735 applications for steel imports from Japan, out of which 594 were granted NOCs, while 141 were denied for not meeting the necessary standards.