look news india
Mumbai: The Indian government is considering further expanding the stringent quality standards in view of the increasing imports of substandard steel from China. The decision was taken after a detailed review by the Steel Ministry in early October of the challenges faced by India's steel sector.
India has become a net importer of steel in the first five months of the current financial year. According to official data, the country imported 3.45 million tonnes of steel during this period, while 1.92 metric tonnes was exported.
America and European Union have increased tariffs and during this period the demand has also weakened. This has increased the risk of steel dumping in India. The aim of the government to tighten quality control now is to stop the glut of steel imports.
At present, on the basis of 'No Objection Certificate' issued by the Ministry of Steel, several steel grades are allowed to be imported even if quality control orders are already in place.
However, now the government will issue NOC only for those steel grades which are not produced locally. This strictness is expected to prevent imports of steel that do not comply with the Bureau of Indian Standards (BIS).
The Steel Ministry has issued norms for 1279 steel grades under 151 quality control orders, but 1127 grades have been allowed to be imported with NOC. Now officials will increase the scope of quality control orders. India imports around 4 lakh tonnes of non-BIS-compliant steel annually, worth around Rs. 4200 crores.