Relief on specialty steel likely

Govt plans to temporarily suspend strict quality-control rules for importing 55 products to address supply gaps

- Dipali Banka & Abhishek Law

India is preparing to ease rules for the import of certain types of specialty steel, most of which is not made in India or is produced in small quantities and used in cars, transformers and electrical equipment, two steel ministry officials told Mint.

So far, companies were allowed to import these items only from a small list of government-approved suppliers under what was known as Quality Control Orders. This made sourcing difficult and “costly”.

Now, the government plans to temporarily suspend these strict quality-control rules for about 55 steel products for a oneto three-year period, according to the official quoted earlier, who spoke on the condition of anonymity.

The top beneficiaries would be steel exporters from China and Vietnam, among other countries.

While there is no immediate clarity on the impact these changes can have on the domestic steel prices in the absence of finer details, some experts said it could potentially result in a drop in local steel prices when the industry, including larger steel mills, seeks protection like safeguard and anti-dumping duties.

“NITI Aayog has recommended excluding certain grades from the Quality Control Order (QCO). The price impact remains unclear until the specific grades are finalized.