With the issuance of the latest Mandatory Quality Control Order, almost all the major categories of steel — long, flat and semi-finished groups of steel — are covered with BIS norms. The domestic industry was very much perturbed and helpless by the steady flow of imported steel that conformed to foreign standards only without an obligation to prove the equivalence of domestic specifications with that indicated in Bill of Lading or to be under any mandate to get registered with BIS before the commencement of exports.
The ministry of steel must be complemented for appreciating the difficulties being faced by the indigenous producers and create over a period of last 3-and-a-half years an environment that encourages production of quality steel by issuing mandates that make it essential for all the stakeholders associated with production, marketing, storing and distributing the metal to take a valid license before undertaking any of such operations.
For many of the products the effective dates for implementation have been last 2/3 years and for some important flat categories like IS-10748 (HR for Tubes and Pipes), IS-513 (CRC/S), IS-1079 (HRS), IS-3502 (Chequered Plates), IS-6240 (LPG), IS-11513 (HR for Cold Rolling), IS-15647 (HR for narrow width CR) the effective dates are March 18 or September 18 ’16. Steel wire and indented wire for pre-stressed concrete and Bar and drawn steel wire for concrete reinforcement have also been brought under mandatory quality control. This would introduce quality awareness in PSC based construction. During 2012-14, the steel conforming to IS-2062, IS-2002 / IS-2041( Plates for Pressure Vessels at various temperature), IS-1786 (TMT), IS-2830 (Billets), IS-1875 (Billets) have been brought under the mandatory order.
While the intention behind the order is quite laudable and would go a long way towards establishing the quality of Indian steel in the global market and is perfectly in tune with the global practice of setting internal standards conforming to local conditions in the country, a great deal of activities are to be monitored closely in order to fully implement the nuances and specific clauses of the order. Already the importers of auto grade steel have requested for extension of the date of implementation of the standards for CR and Coated steel required by the auto sector to enable them to apply and get certification from BIS. The process of BIS certification for exporters of steel may be revisited for simplification of rules in tune with easing procedures for doing business in India. It is understood that steel exporters of other user groups like construction, defence, heavy machinery and capital goods may also seek extension of time to get a certified licence from BIS.
The unique feature of the order is the listing of the plausible equivalence between concerned BIS code and corresponding ITC-HS codes (up to eight digit classification) in which current imports have been taking place. It would facilitate the identification of the similar products at the ports by the customs authorities as the absence of this list was the primary source of confusion at the entry point on the appropriate definition of the product.
The order by proscribing production and selling of products non-conforming to the specified standards would lead to quality improvement of the domestic steel producers. In order to accommodate the small and medium steel enterprises rolling steel out of poor grade inputs available with uncertain quality, less stringent specifications suitable for non-critical applications, namely, IS-15911 has been issued by BIS.
It is imperative that a pan India awareness campaign is undertaken to make producers and users of steel fully aware of the quality control order to dispel doubts and apprehensions expressed in various quarters on the interpretations and implication of the order. It is also required to train and educate the various groups under “Appropriate Authority” monitoring the order, specifically officials of state industry department and those of district industry centres who have a better perspective of different industry groups functioning at various locations and the current and emerging needs of the user groups under their jurisdiction.
The author is DG, Institute of Steel Growth and
Development. Views expressed are personal.