NEW DELHI (Scrap Monster) : The decision by the Indian Ministry of Commerce to allow steel imports with relaxed quality norms has raised strong protests from amongst the major steel makers in the country. The industry feels that the new decision to allow steel imports without quality certification may cripple the domestic steel industry.

According to domestic steel producers, the steel produced in the country is of highest quality. Quality Certification is a pre-requisite in nuclear and defense sectors. The relaxation of norms would boost imports of lower quality products from countries like China and Ukraine, which will result in idling of domestic steel production capacities.

The long term implications of the decision are manifold. The domestic steel industry is currently passing through various challenging situations. High input cost and slow domestic demand are already posing big threats to the sector. Added to that is the government proposal to reduce the export duty on iron-ore, which may affect the raw material security of the domestic steel industry.

According to statistics recently released by the Joint Plant Committee (JPC) under the country’s Ministry of Steel, the country’s total steel imports during 2012-’13 reached 7.9 million tonnes, 14.6% higher when compared to imports of 6.9 million tonnes during the previous year.

Author: Paul Ploumis