As per Indian government order, secondary steel manufacturers (which comprises over 50% steel production in India) will have to compulsorily comply with the specific norms prescribed by Bureau of Indian Standards (BIS) from September 12.
Industry experts comment that steelmakers are yet not prepared for standardization as raw material available itself is not BIS marked.
What does Industry Say:
All India induction furnace association president Mr KK Garg said that ” BIS will be implemented from 12th of Sep, but we are seeking for some grace period.Also steel manufacturers in Punjab are not ready for this standardization and we strongly oppose it.”
On the other hand steel manufacturers in Chattisgarh had approached Chief Minister for extension.Market participants comment that government should focus on improving quality of raw material rather than focusing on intermediate products like ingot and billet.
In case grace is not granted by central government than steel makers producing ingot and billet without BIS mark will be considered as scrap (and certainly it will fetch lower value), said sources.
Though most of steelmakers are hopeful that some grace or extension will be given.
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