Steel Ministry Tightens Scrutiny on ₹4,000-Cr Non-BIS Imports Amid Surge in Quality Violations

The Ministry of Steel has launched an extensive inquiry into a ₹4,000-crore trade in non-BIS-certified steel from Japan, South Korea, and China, given the rising concern over quality violations. Officials flagged manipulation by intermediaries who reportedly made minor tweaks to steel grades and chemical compositions to dodge the Bureau of Indian Standards (BIS) norms.

A sharp spike in import applications for non-BIS steel prompted the Ministry’s review. In FY24, 23,301 such applications were filed, of which 5,181 (22%) were rejected. The trend intensified in FY25 (up to September), with 15,645 applications filed and 3,840 (25%) denied. This uptick coincided with a flood of cheaper Chinese imports—domestic prices were nearly 34% higher year-on-year, prompting tighter checks.

Technical committee findings revealed that traders sought approvals for “new” steel segments through superficial alterations in product measurements or composition, aimed at importing cheaper, substandard steel.

A Ministry official noted that even shipments from developed nations like Japan and Korea were not exempt from scrutiny. “Higher imports were registered from these countries, and they too raised quality concerns,” the official said.

India’s steel import process requires intermediaries to file requests via the Steel Import Monitoring System (SIMS), detailing grades, composition, and quantity planned over six months. Permission is granted only after thorough vetting. Any non-BIS-grade steel needs Ministry approval, especially if no existing standard is available under the BIS Quality Control Orders (QCO).

Despite the increased vigilance, the Ministry earlier this month offered temporary relief to MSMEs by relaxing sourcing norms for steel products loaded on or before July 15, 2025. These exemptions were meant for pre-placed orders and will not extend beyond that deadline.

Currently, the BIS has set 151 standards covering 1,376 grades of steel under QCOs, with compliance mandatory unless otherwise exempted. Following protests from Indian steel majors about unfair market disruption, the government is now looking to clamp down harder on quality violations and restore balance to the domestic industry.