Come January, steel-makers will
not be able to make or sell their products in the country, unless it carries
the quality assurance marking provided by the Bureau of Indian Standards (BIS).
“Manufacture of steel and steel
products will be allowed only after obtaining a valid licence from the Bureau,” the Union Steel Ministry said in its Steel and Steel Products (Quality Control)
Second Order, 2011, making it mandatory for primary and secondary steel makers
and dealers to register with the BIS by December.
The order, though, could unsettle
the cost matrix of small and medium secondary steel manufacturers who command a
market share of 50-60 per cent. The move to upgrade the manufacturing facility
to produce the prescribed quality standard will call for huge investments, said
an analyst.
Mr Vikram Amin, Executive
Director, Strategy & Business Development, Essar Steel, said the move will
bring consistency and quality standards in the industry, which bode well for
the end-users. He said Essar Steel not only complied with Indian quality
standards, but also conformed to international quality standards.
The sub-standard or defective
steel and steel products, which do not conform to the specified standard, would
be disposed off as scrap as per the scheme of testing and inspection of the BIS.
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