**Policy Summary:**
This document addresses Lok Sabha Unstarred Question No. 4208, concerning the impact of a Quality Control Order (QCO) purportedly issued on June 13, 2025, regarding mandatory BIS certification for raw materials and inputs in steel production. The question raised concerns about insufficient compliance time, the impact on MSMEs reliant on semi-finished steel imports, supply disruptions, cost escalation, and compliance challenges.
The Minister of State in the Ministry of Steel, Shri Bhupathiraju Srinivasa Varma, clarified that no new QCO was issued on June 13, 2025. The clarification aimed to eliminate substandard steel consumption and ensure parity between foreign and domestic manufacturers.
Furthermore, a notification dated July 11, 2025, provided the following exemptions regarding the June 13, 2025 clarification:
1. Mandatory adherence to input steel requirements was exempted for steel product imports with a Bill of Lading shipped on or before July 15, 2025.
2. Mandatory adherence to input steel requirements for final products supplied by Integrated Steel Plants (ISPs) will be exempted after verification of licenses by the Bureau of Indian Standards (BIS).
Key Entities Referenced
Ministry of Steel: A ministry of the Government of India responsible for the development of the steel industry.
LOK SABHA: The lower house of the Parliament of India.
SHRI SANATAN PANDEY: Member of LOK SABHA who raised the question about the Quality Control Order.
Quality Control Order (QCO): A regulatory order mandating BIS certification for raw materials and inputs used in steel production.
BIS certification: Certification from the Bureau of Indian Standards (BIS), a national standards body in India.
MSMEs: Micro, Small and Medium Enterprises, businesses dependent on semifinished steel imports.
SHRI BHUPATHIRAJU SRINIVASA VARMA: Minister of State in the Ministry of Steel.
Bureau of Indian Standards (BIS): The National Standards Body of India responsible for standardization, marking and quality certification of goods.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 4208
FOR ANSWER ON 19.08.2025
IMPACT OF SUDDEN IMPLEMENTATION OF QUALITY CONTROL ORDER
ON MSMES
4208. SHRI SANATAN PANDEY:
Will the Minister of STEEL be pleased to state:
(a) whether the Government is aware that the Quality Control Order (QCO) dated 13th
June 2025, making BIS certification mandatory for raw materials and inputs used in
steel production, was issued without providing adequate time for compliance;
(b) whether the Government has assessed the impact of this sudden implementation
on MSMEs dependent on semi-finished steel imports;
(c) whether the Government has received any representations from trade bodies
highlighting supply disruptions, cost escalation and compliance challenges;
(d) whether the Government proposes to revise the implementation timeline or provide
a grace period, considering that importers had less than one working day to comply;
and
(e) if not, the reasons for such a rapid rollout despite long lead times in steel
procurement?
ANSWER
THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA)
MINISTRY OF STEEL
(a)to(e): No new Quality Control Order (QCO) has been issued by Ministry of Steel on
13th June, 2025. The clarification dated 13th June, 2025 seeks to eliminate consumption
of sub-standard steel in the country and bring parity of foreign manufacturers and
domestic manufacturers. Further, vide Ministry’s notification dated 11th July, 2025 the
following exemptions have been granted in respect of the clarification dated 13th June,
2025 :-
(i) The mandatory adherence requirement of input steel for imports of steel products
with Bill of lading having shipped on board date on or before 15th July, 2025 was
exempted.
(ii) The mandatory adherence requirement of input steel for the final products
supplied by Integrated Steel Plants (ISPs) will be exempted after verification of
such licences by Bureau of Indian Standards (BIS).
*****