PHDCCI urges govt to extend quality control order for steel, steel products by 11 months

By: |
December 30, 2020 8:48 PM

In the statement, PHDCCI President Sanjay Aggarwal said the total demand of tinplate/tin free steel in India is around 6,50,000 tonnes, while the domestic availability is close to 4,00,000 tonnes. Therefore the gap in demand and supply is met through imports.

The order is valid for 9 months till April 17, 2021.

Industry body PHD Chamber on Wednesday urged the government to extend the Steel and Steel Products Quality Control Order (QCO) issued in July this year by another 11 months.

As per the order issued by the Ministry of Steel on July 17, 2020, foreign suppliers are required to take Bureau of Indian Standards (BIS) licence in order to supply tinplate/tin free steel products to consumers in India, PHD Chamber of Commerce and Industry (PHDCCI) said in a statement.

The order is valid for 9 months till April 17, 2021, the body said.

In the statement, PHDCCI President Sanjay Aggarwal said the total demand of tinplate/tin free steel in India is around 6,50,000 tonnes, while the domestic availability is close to 4,00,000 tonnes. Therefore the gap in demand and supply is met through imports.

“Keeping in mind the demand-supply gap…in the country, materials should be allowed to be used which are aligned to International Standard Organisation (ISO). We urge the government to defer (extend) the order. Extension of the implementation of QCO order should be given till March 2022,” Aggarwal said.

The move will extend support to crucial industries like tin can making, metal packaging and processed food industry, he said.

Explaining the rationale behind the request, he said the outbreak of COVID-19 led to unprecedented disruptions, including ban on international travel. Due to these reasons, foreign tinplate mills are likely to face issues in getting the relevant BIS licence to supply their products to India.

S P Sharma, chief economist at PHD Chamber, said the government must take into account the fact that various categories of tinplate/tin free steel products like thinner gauges, narrow width coil, among others, are not produced in India, but are widely used by the concerned industries.

The extension will help a large number of small can makers in the MSMEs sector and avoid job losses, he said.

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