Industry gains strength both nationally and internationally, it's the SME and MSME sector that worry the most. The BIMA (Bombay Iron Merchant Association), FAM, and FII have recently galvanised their efforts to countermand the proposed quality control order, foreseeing the repercussions it would cause.

The government states that this order is proposed primarily to control the quality of steel in India. However, the order, if passed would not only harm only the international trade relation but also the SMEs and MSMEs hampering the dream of Make in India.

The proposed Steel and Steel Products (Quality Control) Order would mandate several steel products to have a BIS (Bureau of Indian Standards) registration. Currently, steel products imported in India are subjected to globally accepted inspection standards, which ensure high quality and required compliance.

This process has been successfully followed for over 4 decades without compromising the quality of steel. The new proposed process of registration would require 10-12 months and would affect the imports of Hot Rolled Steel, as the merchants would have to pay 20% more to the local suppliers. This in-turn would monopolize the business of local mills.

"The SMEs and the MSMEs have a relatively lesser requirement and are highly dependent on local steel merchants for their raw materials. These local traders (who import the steel from international sources at lower rates and better quality) provide them steel on credit, which simplifies their business.

If the proposed order is passed, the quantity of steel imports will be close to nil; mainly because no foreign company would agree to undergo the tedious BIS registration procedure, especially for orders of small quantity," points our Mohan Gurnani, President of FAM.

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