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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.
Consistency, quality
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.
Prohibiting manufacture, storage, sale and distribution of steel products without BIS mark, the order said, no person shall manufacture or store for sale or distribute any steel and steel products that do not conform to set BIS standards.
The order has exempted steel products meant for export that have to conform to the specification of the foreign buyers.
Examining powers
The order provides sweeping rights for inspection to officers above the Under Secretary rank in Steel Ministry, General Managers of the District Industries Centres of State Governments and Directors/Commissioners of Industries of State Governments and Union Territories.
The officers will have authority to draw samples of any steel products bearing the standard mark for ascertaining the quality through laboratory tests approved by the BIS, the order said.
Mr Arun Agarwal, a steel trader from Bhiwani, Haryana, said, there are apprehension that the small and medium secondary steel manufacturers will be put to unnecessary hardship as the authorities on inspection may take objection to the huge quantity of scrap steel stored for reprocessing.
“No manufacturer or dealer shall with intent to evade the provisions of this Order, refuse to give any information lawfully demanded from him or conceal, destroy, mutilate or deface any books or documents or any steel and steel products kept by, or in the possession or control of, such person,” it said
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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