Steel makers will now have to produce Bureau of Indian Standards (BIS) certified steel items as Indian steel ministry has made the certification mandatory from September 12 (some products given extension till 31st Mar 2013).
What is BIS?
BIS is Bureau of Indian Standards, which notifies a standard quality. According to the order “No person shall by himself or through any other person on his behalf manufacture or store for sale or distribute any steel products specified in the schedule which do not confirm to the specified standards and does not bear the standard mark of [the] BIS.â€Â
How will it effect domestic steel industry?
It will impact secondary steel producers the most as it is difficult to control the quality when quality of raw material is not assured. Steel association across the country is opposing it and also claims that it is a lobby by big steel manufacturers to wipe out smaller players.
“It is not practical to maintain the quality asked by BIS, though manufacturers will gradually apply for BIS certification.” said a steel manufacturer based in Raipur Chattisgarh.
How will it impact steel imports?
“The implementation of the Steel and Steel Products (Quality Control) Order will be a big hurdle to imports as it implies that every foreign company will have to register with BIS and pay 1% of the cost of imports towards inspection,†SC Mathur, general secretary of the Cold Rolled Steel Manufacturers Association.
Also every importer and exporter supplying steel products to India have get registered with BIS.Experts also claim that it is made mandatory to check increasing imports from Chinese market.
Leave a Reply