Port Delays, Red Tape Hit 10,000 Steel Units: Study

New Delhi: Over 10,000 steel user units are facing a crisis due to prolonged port delays and burdensome regulatory requirements, and the government should look at streamlining import processes and digitise systems to help the sector, think tank GTRI said on Monday.

The Global Trade Research Initiative (GTRI) also said that policies aimed at protecting domestic steelmakers, including import restrictions and quality control measures, have unintentionally penalised industries dependent on imported steel.

Over 10,000 units are struggling with operational and financial challenges, threatening their production and export capabilities, it added. It also said that Free Trade Agreements (FTAs) need careful scrutiny as some FTAs allow Indian firms to partner with foreign producers and re-import steel at concessional rates, raising concerns about competition. "Port delays and red tape are choking India's steel user industries.

Over 10,000 steel user units face financial strain due to delays at ports and unclear regulatory requirements. Essential imports for manufacturing industries face excessive scrutiny," GTRI Founder Ajay Srivastava said. To monitor imports, the government introduced the Steel Import Monitoring System (SIMS), requiring detailed declarations before goods arrive. Additionally, Quality Control Orders (QCOs) mandate registration with the Bureau of Indian Standards (BIS) for specific steel products. However, he said, Customs has extended these requirements indiscriminately, demanding BIS No Objection Certificates (NOCs) even for items outside the QCO's scope.