Steel Ministry Suspends QCO Enforcement on 55 Indian Standards to
Protect MSMEs and Maintain Import Flows
The Steel
Ministry fired 205 QCOs on steel in Aug last year for AtmaNirbhar
Bharat to stop steel imports. China is at least $100 lower than corresponding Indian
quality. The difference is in the range of 15 to 20 percent
Domestic
prices rose, quality steel went out of the market
After the
QCO blasts, the downstream users and exporters rose in protest, the trio of Ministry
beat a hasty a retreat to suspend 55 of the 158 QCOs..
However,
the mayhem of 15 months has not come to an end. 103 of the original 155 QCOs
remain.
The $214
bn domestic steel industry account for a good 220mn tonne production is in a
mess.
On top of
the QCO blast, coking coal, which accounts for 40 percent cost in steel making,
is saddled with an anti-dumping duty to protect the tiny coke producers from
Australia and Indonesia.
Thus the steel shares are crashing.
<S.O.
5134(E)-20.11.2025-Steel QCO>
Based
on the recommendations of the High-Level Committee on Non-Financial Regulatory
Reforms (HLC-NFRR), the Ministry has examined the broader implications of
enforcing the Steel and Steel Products (Quality Control) Order, 2024 for the
steel sector. The Ministry has taken into account potential downstream pricing
impacts, the need to ensure adequate availability of steel for MSMEs and
consumer industries, and the continued reliance on imports for certain
specialised grades. At the same time, considerations relating to prevention of
unfair trade practices, support for small steel producers, and the advancement
of domestic self-reliance have also been assessed.
Taking
these factors together, enforcement of QCO on 42 Indian Standards under the
Steel and Steel Products (Quality Control) Order, 2024 has been suspended for
three years, and enforcement of QCO on 13 Indian Standards, relating to
specialty steel grades covered under PLI 1.2, has been suspended for one year.
The Ministry of Steel has issued the Steel and Steel Products (Quality Control)
Amendment Order, 2025.
QCO on Indian Standards
Suspended for a Period of Three Years
The
enforcement of 42 IS Standards in Schedule 1 of the Steel and Steel Products
(Quality Control) Order, 2024—covering steel grades predominantly used in the
manufacturing of engineered products, automotive and durable goods.
QCO on Indian Standards
Suspended for a Period of One Year
The
enforcement of 13 IS Standards in Schedule 1 of the Steel and Steel Products
(Quality Control) Order, 2024—covering specialty steel grades majorly used in
niche and high-precision applications, including materials requiring
exceptional strength, hardness, dimensional accuracy and thermal stability.